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THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 

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ARRANGEMENT OF SECTIONS  

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CHAPTER I 

PRELIMINARY 

SECTIONS 

  1. Short title, extent and commencement. 
  2. Definitions

CHAPTER II  

ADMINISTRATION 

  1. Officers under this Act. 
  2. Appointment of officers. 
  3. Powers of officers
  4. Authorisation of officers of State tax or Union territory tax as proper officer in certain  circumstances. 

CHAPTER III 

LEVY AND COLLECTION OF TAX 

  1. Scope of supply. 
  2. Tax liability on composite and mixed supplies. 
  3. Levy and collection. 
  4. Composition levy. 
  5. Power to grant exemption from tax. 

CHAPTER IV 

TIME AND VALUE OF SUPPLY 

  1. Time of supply of goods. 
  2. Time of supply of services. 
  3. Change in rate of tax in respect of supply of goods or services. 
  4. Value of taxable supply. 

CHAPTER V 

INPUT TAX CREDIT 

  1. Eligibility and conditions for taking input tax credit. 
  2. Apportionment of credit and blocked credits. 
  3. Availability of credit in special circumstances. 
  4. Taking input tax credit in respect of inputs and capital goods sent for job work. 20. Manner of distribution of credit by Input Service Distributor.

SECTIONS 

  1. Manner of recovery of credit distributed in excess. 

CHAPTER VI  

REGISTRATION 

  1. Persons liable for registration. 
  2. Persons not liable for registration. 
  3. Compulsory registration in certain cases. 
  4. Procedure for registration. 
  5. Deemed registration. 
  6. Special provisions relating to casual taxable person and non-resident taxable person. 28. Amendment of registration. 
  7. Cancellation or suspension of registration. 
  8. Revocation of cancellation of registration. 

CHAPTER VII 

TAX INVOICE, CREDIT AND DEBIT NOTES 

  1. Tax invoice. 
  2. Prohibition of unauthorised collection of tax. 
  3. Amount of tax to be indicated in tax invoice and other documents. 34. Credit and debit notes. 

CHAPTER VIII 

ACCOUNTS AND RECORDS 

  1. Accounts and other records. 
  2. Period of retention of accounts. 

CHAPTER IX  

RETURNS 

  1. Furnishing details of outward supplies. 
  2. Furnishing details of inward supplies. 
  3. Furnishing of returns. 
  4. First return. 
  5. Claim of input tax credit and provisional acceptance thereof. 
  6. Matching, reversal and reclaim of input tax credit. 
  7. Matching, reversal and reclaim of reduction in output tax liability. 44. Annual return. 
  8. Final return. 
  9. Notice to return defaulters. 
  10. Levy of late fee. 
  11. Goods and services tax practitioners.

CHAPTER X  

PAYMENT OF TAX 

SECTIONS 

  1. Payment of tax, interest, penalty and other amounts. 

49A. Utilisation of input tax credit subject to certain conditions. 49B. Order of utilisation of input tax credit. 

  1. Interest on delayed payment of tax. 
  2. Tax deductions at source. 
  3. Collection of tax at stores. 
  4. Transfer of input tax credit. 

CHAPTER XI  

REFUNDS 

  1. Refund of tax. 
  2. Refund in certain cases. 
  3. Interest on delayed refunds. 
  4. Consumer Welfare Fund. 
  5. Utilisation of Fund. 

CHAPTER XII  

ASSESSMENT 

  1. Self-assessment. 
  2. Provisional assessment. 
  3. Scrutiny of returns. 
  4. Assessment of non-filers of returns. 
  5. Assessment of unregistered persons. 
  6. Summary assessment in certain special cases. 

CHAPTER XIII  

AUDIT 

  1. Audit by tax authorities. 
  2. Special audit. 

CHAPTER XIV  

INSPECTION, SEARCH, SEIZURE AND ARREST  

  1. Power of inspection, search and seizure. 
  2. Inspection of goods in movement. 
  3. Power to arrest. 
  4. Power to summon persons to give evidence and produce documents. 71. Access to business premises. 
  5. Officers to assist proper officers.

CHAPTER XV 

DEMANDS AND RECOVERY 

SECTIONS 

  1. Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly  availed or utilised for any reason other than fraud or any wilful-misstatement or suppression of  facts. 
  2. Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly  availed or utilised by reason of fraud or any wilful-misstatement or suppression of facts. 75. General provisions relating to determination of tax. 
  3. Tax collected but not paid to Government. 
  4. Tax wrongfully collected and paid to Central Government or State Government. 78. Initiation of recovery proceedings. 
  5. Recovery of tax. 
  6. Payment of tax and other amount in instalments. 
  7. Transfer of property to be void in certain cases. 
  8. Tax to be first charge on property. 
  9. Provisional attachment to protect revenue in certain cases. 
  10. Continuation and validation of certain recovery proceedings. 

CHAPTER XVI 

LIABILITY TO PAY IN CERTAIN CASES 

  1. Liability in case of transfer of business. 
  2. Liability of agent and principal. 
  3. Liability in case of amalgamation or merger of companies. 
  4. Liability in case of company in liquidation. 
  5. Liability of directors of private company. 
  6. Liability of partners of firm to pay tax. 
  7. Liability of guardians, trustees, etc. 
  8. Liability of Court of Wards, etc. 
  9. Special provisions regarding liability to pay tax, interest or penalty in certain cases. 94. Liability in other cases. 

CHAPTER XVII 

ADVANCE RULING 

  1. Definitions. 
  2. Authority for advance ruling. 
  3. Application for advance ruling. 
  4. Procedure on receipt of application. 
  5. Appellate Authority for Advance Ruling.

SECTIONS 

  1. Appeal to Appellate Authority. 
  2. Orders of Appellate Authority. 
  3. Rectification of advance ruling. 
  4. Applicability of advance ruling. 
  5. Advance ruling to be void in certain circumstances. 
  6. Powers of Authority and Appellate Authority. 
  7. Procedure of Authority and Appellate Authority. 

CHAPTER XVIII 

APPEALS AND REVISION 

  1. Appeals to Appellate Authority. 
  2. Powers of Revisional Authority. 
  3. Constitution of Appellate Tribunal and Benches thereof. 
  4. President and Members of Appellate Tribunal, their qualification, appointment, conditions of  service, etc. 
  5. Procedure before Appellate Tribunal. 
  6. Appeals to Appellate Tribunal. 
  7. Orders of Appellate Tribunal. 
  8. Financial and administrative powers of President. 
  9. Interest on refund of amount paid for admission of appeal. 
  10. Appearance by authorised representative. 
  11. Appeal to High Court. 
  12. Appeal to Supreme Court. 
  13. Sums due to be paid notwithstanding appeal, etc. 
  14. Appeal not to be filed in certain cases. 
  15. Non-appealable decisions and orders. 

CHAPTER XIX 

 OFFENCES AND PENALITIS 

  1. Penalty for certain offences. 
  2. Penalty for failure to furnish information return. 
  3. Fine for failure to furnish statistics. 
  4. General penalty. 
  5. General disciplines related to penalty. 
  6. Power to impose penalty in certain cases. 
  7. Power to waive penalty or fee or both. 
  8. Detention, seizure and release of goods and conveyances in transit.

SECTIONS 

  1. Confiscation of goods or conveyances and levy of penalty. 
  2. Confiscation or penalty not to interfere with other punishments. 
  3. Punishment for certain offences. 
  4. Liability of officers and certain other persons. 
  5. Cognizance of offences. 
  6. Presumption of culpable mental state. 
  7. Relevancy of statements under certain circumstances. 
  8. Offences by companies. 
  9. Compounding of offences. 

CHAPTER XX 

TRANSITIONAL PROVISIONS 

  1. Migration of existing taxpayers. 
  2. Transitional arrangements for input tax credit. 
  3. Transitional provisions relating to job work. 
  4. Miscellaneous transitional provisions. 

CHAPTER XXI 

MISCELLANEOUS 

  1. Job work procedure. 
  2. Presumption as to documents in certain cases. 
  3. Admissibility of micro films, facsimile copies of documents and computer printouts as  documents and as evidence. 
  4. Common Portal. 
  5. Deemed exports. 
  6. Special procedure for certain processes. 
  7. Goods and services tax compliance rating. 
  8. Obligation to furnish information return. 
  9. Power to collect statistics. 
  10. Bar on disclosure of information. 
  11. Taking assistance from an expert. 
  12. Power to take samples. 
  13. Burden of proof. 
  14. Persons deemed to be public servants. 
  15. Protection of action take under this Act. 
  16. Disclosure of information by a public servant. 
  17. Publication of information in respect of persons in certain cases.

SECTIONS 

  1. Assessment proceedings, etc., not to be invalid on certain grounds. 161. Rectification of errors apparent on the face of record. 162. Bar on jurisdiction of civil courts. 
  2. Levy of fee. 
  3. Power of Government to make rules. 
  4. Power to make regulations. 
  5. Laying of rules, regulations and notifications. 
  6. Delegation of powers. 
  7. Power to issue instructions or directions. 
  8. Service of notice in certain circumstances. 
  9. Rounding off of tax, etc. 
  10. Anti-profiteering measure. 
  11. Removal of difficulties. 
  12. Amendment of Act 32 of 1994. 
  13. Repeal and saving. 

SCHEDULE I. 

SCHEDULE II. 

SCHEDULE III.

THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 

ACT NO. 12 OF 2017 

[12th April, 2017.] 

An Act to make a provision for levy and collection of tax on intra-State supply of goods or  services or both by the Central Government and for matters connected therewith or incidental  thereto. 

BE it enacted by Parliament in the Sixty-eighth Year of the Republic of India as follows:— CHAPTER I 

PRELIMINARY 

  1. Short title, extent and commencement.—(1) This Act may be called the Central Goods and  Services Tax Act, 2017. 

(2) It extends to the whole of India 1***. 

(3) It shall come into force on such date2as the Central Government may, by notification in the  Official Gazette, appoint: 

Provided that different dates may be appointed for different provisions of this Act and any reference  in any such provision to the commencement of this Act shall be construed as a reference to the coming  into force of that provision. 

  1. Definitions.— In this Act, unless the context otherwise requires,–– 

(1) ―actionable claim‖ shall have the same meaning as assigned to it in section 3 of the Transfer  of Property Act, 1882 (4 of 1882); 

(2) ―address of delivery‖ means the address of the recipient of goods or services or both indicated  on the tax invoice issued by a registered person for delivery of such goods or services or both; 

(3) ―address on record‖ means the address of the recipient as available in the records of the  supplier; 

(4) ―adjudicating authority‖ means any authority, appointed or authorised to pass any order or decision  under this Act, but does not include the 3[Central Board of Indirect Taxes and Customs], the Revisional  Authority, the Authority for Advance Ruling, the Appellate Authority for Advance Ruling, 4[the Appellate  Authority, the Appellate Tribunal and the Authority referred to in sub-section (2) of section 171]; 

(5) ―agent‖ means a person, including a factor, broker, commission agent, arhatia, del credere  agent, an auctioneer or any other mercantile agent, by whatever name called, who carries on the  business of supply or receipt of goods or services or both on behalf of another; 

(6) ―aggregate turnover‖ means the aggregate value of all taxable supplies (excluding the value of  inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of  goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to  be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess; 

  

  1. The words ―except the State of Jammu and Kashmir‖ omitted by Act 26 of 2017, s. 2 (w.e.f. 8-7-2017). 2. 22nd, June, 2017 for sections 1, 2, 3, 4, 5, 10, 22, 23, 24, 25, 26, 27, 28, 29, 30, 139, 146 and 164, vide notification No. G.S.R.  605 (E) dated the 19 June, 2017, see Gazette of India, Extraordinary, Part II, sec. 3(i). 

 1st July, 2017 for sections 6 to 9, 11 to 21, 31 to 41, 42 except the proviso to sub-section (9) of section 42, 43 except the  proviso to sub-section (9) of section 43, 44 to 50, 53 to 138, 140 to 145, 147 to 163, 165 to 174 vide notification No. G.S.R.  658 (E) dated the 28th June, 2017, see Gazette of India, Extraordinary, Part II, sec. 3(i). 

  1. Subs. by Act 31 of 2018, s. 2, for Central Board of Excise and Customs‖ (w.e.f. 1-2-2019).  
  2. Subs. by s. 2, ibid, for ―the Appellate Authority and the Appellate Tribunal‖ (w.e.f. 1-2-2019). 

(7) ―agriculturist‖ means an individual or a Hindu Undivided Family who undertakes cultivation  of land— 

(a) by own labour, or 

(b) by the labour of family, or 

(c) by servants on wages payable in cash or kind or by hired labour under personal supervision  or the personal supervision of any member of the family; 

(8) ―Appellate Authority‖ means an authority appointed or authorised to hear appeals as referred  to in section 107; 

(9) ―Appellate Tribunal‖ means the Goods and Services Tax Appellate Tribunal constituted under  section 109; 

(10) ―appointed day‖ means the date on which the provisions of this Act shall come into force; 

(11) ―assessment‖ means determination of tax liability under this Act and includes self assessment, re-assessment, provisional assessment, summary assessment and best judgment  assessment; 

(12) ―associated enterprises‖ shall have the same meaning as assigned to it in section 92A of the  Income-tax Act, 1961 (43 of 1961); 

(13) ―audit‖ means the examination of records, returns and other documents maintained or  furnished by the registered person under this Act or the rules made thereunder or under any other law  for the time being in force to verify the correctness of turnover declared, taxes paid, refund claimed and  input tax credit availed, and to assess his compliance with the provisions of this Act or the rules made  thereunder; 

(14) ―authorised bank‖ shall mean a bank or a branch of a bank authorised by the Government to  collect the tax or any other amount payable under this Act; 

(15) ―authorised representative‖ means the representative as referred to in section 116; (16) ―Board‖ means the 1[Central Board of Indirect Taxes and Customs] constituted under the  Central Boards of Revenue Act, 1963 (54 of 1963); 

(17) ―business‖ includes–– 

(a) any trade, commerce, manufacture, profession, vocation, adventure, wager or any other  similar activity, whether or not it is for a pecuniary benefit; 

(b) any activity or transaction in connection with or incidental or ancillary to sub-clause (a); 

(c) any activity or transaction in the nature of sub-clause (a), whether or not there is volume,  frequency, continuity or regularity of such transaction; 

(d) supply or acquisition of goods including capital goods and services in connection with  commencement or closure of business; 

(e) provision by a club, association, society, or any such body (for a subscription or any other  consideration) of the facilities or benefits to its members; 

(f) admission, for a consideration, of persons to any premises; 

(g) services supplied by a person as the holder of an office which has been accepted by him in the  course or furtherance of his trade, profession or vocation; 

2[(h) activities of a race club including by way of totalisator or a license to book maker or  activities of a licensed book maker in such club; and];  

  

  1. Subs. by Act 13 of 2018, s. 221 for ―Central Board of Excise and Customs‖ (w.e.f. 29-3-2018). 
  2. Subs. by Act 31 of 2018, s. 2 (w.e.f. 1-2-2019).

(i) any activity or transaction undertaken by the Central Government, a State Government or  any local authority in which they are engaged as public authorities; 

1* * * * * 

(19) ―capital goods‖ means goods, the value of which is capitalised in the books of account of the  person claiming the input tax credit and which are used or intended to be used in the course or  furtherance of business; 

(20) ―casual taxable person‖ means a person who occasionally undertakes transactions involving  supply of goods or services or both in the course or furtherance of business, whether as principal, agent  or in any other capacity, in a State or a Union territory where he has no fixed place of business; 

(21) ―central tax‖ means the central goods and services tax levied under section 9; 

(22) ―cess‖ shall have the same meaning as assigned to it in the Goods and Services Tax  (Compensation to States) Act; 

(23) ―chartered accountant‖ means a chartered accountant as defined in clause (b) of  sub-section (1) of section 2 of the Chartered Accountants Act, 1949 (38 of 1949); 

(24) ―Commissioner‖ means the Commissioner of central tax and includes the Principal  Commissioner of central tax appointed under section 3 and the Commissioner of integrated tax  appointed under the Integrated Goods and Services Tax Act; 

(25) ―Commissioner in the Board‖ means the Commissioner referred to in section 168; 

(26) ―common portal‖ means the common goods and services tax electronic portal referred to in  section 146; 

(27) ―common working days‖ in respect of a State or Union territory shall mean such days in  succession which are not declared as gazetted holidays by the Central Government or the concerned  State or Union territory Government; 

(28) ―company secretary‖ means a company secretary as defined in clause (c) of sub-section (1)  of section 2 of the Company Secretaries Act, 1980 (56 of 1980); 

(29) ―competent authority‖ means such authority as may be notified by the Government; 

(30) ―composite supply‖ means a supply made by a taxable person to a recipient consisting of two  or more taxable supplies of goods or services or both, or any combination thereof, which are naturally  bundled and supplied in conjunction with each other in the ordinary course of business, one of which  is a principal supply; 

Illustration.— Where goods are packed and transported with insurance, the supply of goods,  packing materials, transport and insurance is a composite supply and supply of goods is a principal  supply; 

(31) ―consideration‖ in relation to the supply of goods or services or both includes–– 

(a) any payment made or to be made, whether in money or otherwise, in respect of, in  response to, or for the inducement of, the supply of goods or services or both, whether by the  recipient or by any other person but shall not include any subsidy given by the Central  Government or a State Government; 

(b) the monetary value of any act or forbearance, in respect of, in response to, or for the  inducement of, the supply of goods or services or both, whether by the recipient or by any other  person but shall not include any subsidy given by the Central Government or a State Government: 

  

  1. Clause (18) omitted by s. 2, ibid (w.e.f. 1-2-2019). 

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Provided that a deposit given in respect of the supply of goods or services or both shall not be  considered as payment made for such supply unless the supplier applies such deposit as consideration  for the said supply; 

(32) ―continuous supply of goods‖ means a supply of goods which is provided, or agreed to be  provided, continuously or on recurrent basis, under a contract, whether or not by means of a wire,  cable, pipeline or other conduit, and for which the supplier invoices the recipient on a regular or  periodic basis and includes supply of such goods as the Government may, subject to such conditions,  as it may, by notification, specify; 

(33) ―continuous supply of services‖ means a supply of services which is provided, or agreed to  be provided, continuously or on recurrent basis, under a contract, for a period exceeding three months  with periodic payment obligations and includes supply of such services as the Government may,  subject to such conditions, as it may, by notification, specify; 

(34) ―conveyance‖ includes a vessel, an aircraft and a vehicle; 

(35) ―cost accountant‖ means a cost accountant as defined in 1[clause (b)] of sub-section (1) of  section 2 of the Cost and Works Accountants Act, 1959 (23 of 1959); 

(36) ―Council‖ means the Goods and Services Tax Council established under article 279A of the  Constitution; 

(37) ―credit note‖ means a document issued by a registered person under sub-section (1) of  section 34; 

(38) ―debit note‖ means a document issued by a registered person under sub-section (3) of  section 34; 

(39) ―deemed exports‖ means such supplies of goods as may be notified under section 147; (40) ―designated authority‖ means such authority as may be notified by the Board; 

(41) ―document‖ includes written or printed record of any sort and electronic record as defined in  clause (t) of section 2 of the Information Technology Act, 2000 (21 of 2000); 

(42) ―drawback‖ in relation to any goods manufactured in India and exported, means the rebate of  duty, tax or cess chargeable on any imported inputs or on any domestic inputs or input services used  in the manufacture of such goods; 

(43) ―electronic cash ledger‖ means the electronic cash ledger referred to in sub-section (1) of  section 49; 

(44) ―electronic commerce‖ means the supply of goods or services or both, including digital  products over digital or electronic network; 

(45) ―electronic commerce operator‖ means any person who owns, operates or manages digital or  electronic facility or platform for electronic commerce; 

(46) ―electronic credit ledger‖ means the electronic credit ledger referred to in sub-section (2) of  section 49; 

(47) ―exempt supply‖ means supply of any goods or services or both which attracts nil rate of tax  or which may be wholly exempt from tax under section 11, or under section 6 of the Integrated Goods  and Services Tax Act, and includes non-taxable supply; 

(48) ―existing law‖ means any law, notification, order, rule or regulation relating to levy and  collection of duty or tax on goods or services or both passed or made before the commencement of  this Act by Parliament or any Authority or person having the power to make such law, notification,  order, rule or regulation; 

  

  1. Subs. by Act 31 of 2018 by s. 2, for ―clause (c)‖, (w.e.f. 1-2-2019).

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(49) ―family‖ means,–– 

(i) the spouse and children of the person; and 

(ii) the parents, grand-parents, brothers and sisters of the person if they are wholly or mainly  dependent on the said person; 

(50) ―fixed establishment‖ means a place (other than the registered place of business) which is  characterised by a sufficient degree of permanence and suitable structure in terms of human and  technical resources to supply services, or to receive and use services for its own needs; 

(51) ―Fund‖ means the Consumer Welfare Fund established under section 57; 

(52) ―goods‖ means every kind of movable property other than money and securities but includes  actionable claim, growing crops, grass and things attached to or forming part of the land which are  agreed to be severed before supply or under a contract of supply; 

(53) ―Government‖ means the Central Government; 

(54) ―Goods and Services Tax (Compensation to States) Act‖ means the Goods and Services Tax  (Compensation to States) Act, 2017 (15 of 2017); 

(55) ―goods and services tax practitioner‖ means any person who has been approved under  section 48 to act as such practitioner; 

(56) ―India‖ means the territory of India as referred to in article 1 of the Constitution, its territorial  waters, seabed and sub-soil underlying such waters, continental shelf, exclusive economic zone or any  other maritime zone as referred to in the Territorial Waters, Continental Shelf, Exclusive Economic Zone  and other Maritime Zones Act, 1976 (80 of 1976), and the air space above its territory and territorial  waters; 

(57) ―Integrated Goods and Services Tax Act‖ means the Integrated Goods and Services Tax Act,  2017 (13 of 2017); 

(58) ―integrated tax‖ means the integrated goods and services tax levied under the Integrated  Goods and Services Tax Act; 

(59) ―input‖ means any goods other than capital goods used or intended to be used by a supplier  in the course or furtherance of business; 

(60) ―input service‖ means any service used or intended to be used by a supplier in the course or  furtherance of business; 

(61) ―Input Service Distributor‖ means an office of the supplier of goods or services or both  which receives tax invoices issued under section 31 towards the receipt of input services and issues a  prescribed document for the purposes of distributing the credit of central tax, State tax, integrated tax  or Union territory tax paid on the said services to a supplier of taxable goods or services or both  having the same Permanent Account Number as that of the said office; 

(62) ―input tax‖ in relation to a registered person, means the central tax, State tax, integrated tax  or Union territory tax charged on any supply of goods or services or both made to him and includes— 

(a) the integrated goods and services tax charged on import of goods; 

(b) the tax payable under the provisions of sub-sections (3) and (4) of section 9; 

(c) the tax payable under the provisions of sub-sections (3) and (4) of section 5 of the  Integrated Goods and Services Tax Act; 

(d) the tax payable under the provisions of sub-sections (3) and (4) of section 9 of the  respective State Goods and Services Tax Act; or 

(e) the tax payable under the provisions of sub-sections (3) and (4) of section 7 of the Union  Territory Goods and Services Tax Act,

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but does not include the tax paid under the composition levy; 

(63) ―input tax credit‖ means the credit of input tax; 

(64) ―intra-State supply of goods‖ shall have the same meaning as assigned to it in section 8 of  the Integrated Goods and Services Tax Act; 

(65) ―intra-State supply of services‖ shall have the same meaning as assigned to it in section 8 of  the Integrated Goods and Services Tax Act; 

(66) ―invoice‖ or ―tax invoice‖ means the tax invoice referred to in section 31; 

(67) ―inward supply‖ in relation to a person, shall mean receipt of goods or services or both  whether by purchase, acquisition or any other means with or without consideration; 

(68) ―job work‖ means any treatment or process undertaken by a person on goods belonging to another registered person and the expression ―job worker‖ shall be construed accordingly; 

(69) ―local authority‖ means–– 

(a) a ―Panchayat‖ as defined in clause (d) of article 243 of the Constitution; 

(b) a ―Municipality‖ as defined in clause (e) of article 243P of the Constitution; 

(c) a Municipal Committee, a Zilla Parishad, a District Board, and any other authority legally  entitled to, or entrusted by the Central Government or any State Government with the control or  management of a municipal or local fund; 

(d) a Cantonment Board as defined in section 3 of the Cantonments Act, 2006 (41 of 2006); 

(e) a Regional Council or a District Council constituted under the Sixth Schedule to the  Constitution; 

(f) a Development Board constituted under article 371 1[and article 371J] of the Constitution;  or 

(g) a Regional Council constituted under article 371A of the Constitution; 

(70) ―location of the recipient of services‖ means,— 

(a) where a supply is received at a place of business for which the registration has been  obtained, the location of such place of business; 

(b) where a supply is received at a place other than the place of business for which  registration has been obtained (a fixed establishment elsewhere), the location of such fixed  establishment; 

(c) where a supply is received at more than one establishment, whether the place of business  or fixed establishment, the location of the establishment most directly concerned with the receipt  of the supply; and 

(d) in absence of such places, the location of the usual place of residence of the recipient; (71) ―location of the supplier of services‖ means,— 

(a) where a supply is made from a place of business for which the registration has been obtained, the location of such place of business; 

(b) where a supply is made from a place other than the place of business for which  registration has been obtained (a fixed establishment elsewhere), the location of such fixed  establishment; 

(c) where a supply is made from more than one establishment, whether the place of business  or fixed establishment, the location of the establishment most directly concerned with the  provisions of the supply; and 

  

  1. Ins. by Act 31 of 2018, s. 2 (w.e.f. 1-2-2019).

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(d) in absence of such places, the location of the usual place of residence of the supplier; 

(72) ―manufacture‖ means processing of raw material or inputs in any manner that results in  emergence of a new product having a distinct name, character and use and the term ―manufacturer‖  shall be construed accordingly; 

(73) ―market value‖ shall mean the full amount which a recipient of a supply is required to pay in  order to obtain the goods or services or both of like kind and quality at or about the same time and at the  same commercial level where the recipient and the supplier are not related; 

(74) ―mixed supply‖ means two or more individual supplies of goods or services, or any combination  thereof, made in conjunction with each other by a taxable person for a single price where such supply  does not constitute a composite supply. 

Illustration.— A supply of a package consisting of canned foods, sweets, chocolates, cakes, dry  fruits, aerated drinks and fruit juices when supplied for a single price is a mixed supply. Each of these  items can be supplied separately and is not dependent on any other. It shall not be a mixed supply if  these items are supplied separately; 

(75) ―money‖ means the Indian legal tender or any foreign currency, cheque, promissory note, bill of  exchange, letter of credit, draft, pay order, traveller cheque, money order, postal or electronic remittance or  any other instrument recognised by the Reserve Bank of India when used as a consideration to settle an  obligation or exchange with Indian legal tender of another denomination but shall not include any  currency that is held for its numismatic value; 

(76) ―motor vehicle‖ shall have the same meaning as assigned to it in clause (28) of section 2 of  the Motor Vehicles Act, 1988 (59 of 1988); 

(77) ―non-resident taxable person‖ means any person who occasionally undertakes transactions  involving supply of goods or services or both, whether as principal or agent or in any other capacity,  but who has no fixed place of business or residence in India; 

(78) ―non-taxable supply‖ means a supply of goods or services or both which is not leviable to tax  under this Act or under the Integrated Goods and Services Tax Act; 

(79) ―non-taxable territory‖ means the territory which is outside the taxable territory; 

(80) ―notification‖ means a notification published in the Official Gazette and the expressions  ―notify‖ and ―notified‖ shall be construed accordingly; 

(81) ―other territory‖ includes territories other than those comprising in a State and those referred  to in sub-clauses (a) to (e) of clause (114) ; 

(82) ―output tax‖ in relation to a taxable person, means the tax chargeable under this Act on  taxable supply of goods or services or both made by him or by his agent but excludes tax payable by  him on reverse charge basis; 

(83) ―outward supply‖ in relation to a taxable person, means supply of goods or services or both,  whether by sale, transfer, barter, exchange, licence, rental, lease or disposal or any other mode, made  or agreed to be made by such person in the course or furtherance of business; 

(84) ―person‖ includes— 

(a) an individual; 

(b) a Hindu Undivided Family; 

(c) a company; 

(d) a firm; 

(e) a Limited Liability Partnership; 

(f) an association of persons or a body of individuals, whether incorporated or not, in India or  outside India;

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(g) any corporation established by or under any Central Act, State Act or Provincial Act or a  Government company as defined in clause (45) of section 2 of the Companies Act, 2013  (18 of 2013); 

(h) any body corporate incorporated by or under the laws of a country outside India; (i) a co-operative society registered under any law relating to co-operative societies; (j) a local authority; 

(k) Central Government or a State Government; 

(l) society as defined under the Societies Registration Act, 1860 (21 of 1860); 

(m) trust; and 

(n) every artificial juridical person, not falling within any of the above; 

(85) ―place of business‖ includes–– 

(a) a place from where the business is ordinarily carried on, and includes a warehouse, a  godown or any other place where a taxable person stores his goods, supplies or receives goods or  services or both; or 

(b) a place where a taxable person maintains his books of account; or 

(c) a place where a taxable person is engaged in business through an agent, by whatever name  called; 

(86) ―place of supply‖ means the place of supply as referred to in Chapter V of the Integrated  Goods and Services Tax Act; 

(87) ―prescribed‖ means prescribed by rules made under this Act on the recommendations of the  Council; 

(88) ―principal‖ means a person on whose behalf an agent carries on the business of supply or  receipt of goods or services or both; 

(89) ―principal place of business‖ means the place of business specified as the principal place of  business in the certificate of registration; 

(90) ―principal supply‖ means the supply of goods or services which constitutes the predominant  element of a composite supply and to which any other supply forming part of that composite supply is  ancillary; 

(91) ―proper officer‖ in relation to any function to be performed under this Act, means the  Commissioner or the officer of the central tax who is assigned that function by the Commissioner in  the Board; 

(92) ―quarter‖ shall mean a period comprising three consecutive calendar months, ending on the last  day of March, June, September and December of a calendar year; 

(93) ―recipient‖ of supply of goods or services or both, means— 

(a) where a consideration is payable for the supply of goods or services or both, the person  who is liable to pay that consideration; 

(b) where no consideration is payable for the supply of goods, the person to whom the goods  are delivered or made available, or to whom possession or use of the goods is given or made  available; and 

(c) where no consideration is payable for the supply of a service, the person to whom the  service is rendered, 

and any reference to a person to whom a supply is made shall be construed as a reference to the  recipient of the supply and shall include an agent acting as such on behalf of the recipient in relation  to the goods or services or both supplied;

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(94) ―registered person‖ means a person who is registered under section 25 but does not include a  person having a Unique Identity Number; 

(95) ―regulations‖ means the regulations made by the Board under this Act on the  recommendations of the Council; 

(96) ―removal‖ in relation to goods, means— 

(a) despatch of the goods for delivery by the supplier thereof or by any other person acting on  behalf of such supplier; or 

(b) collection of the goods by the recipient thereof or by any other person acting on behalf of  such recipient; 

(97) ―return‖ means any return prescribed or otherwise required to be furnished by or under this  Act or the rules made thereunder; 

(98) ―reverse charge‖ means the liability to pay tax by the recipient of supply of goods or services  or both instead of the supplier of such goods or services or both under sub-section (3) or sub-section (4)  of section 9, or under sub-section (3) or sub-section (4) of section 5 of the Integrated Goods and  Services Tax Act; 

(99) ―Revisional Authority‖ means an authority appointed or authorised for revision of decision  or orders as referred to in section 108; 

(100) ―Schedule‖ means a Schedule appended to this Act; 

(101) ―securities‖ shall have the same meaning as assigned to it in clause (h) of section 2 of the  Securities Contracts (Regulation) Act, 1956 (42 of 1956); 

(102) ―services‖ means anything other than goods, money and securities but includes activities  relating to the use of money or its conversion by cash or by any other mode, from one form, currency  or denomination, to another form, currency or denomination for which a separate consideration is  charged; 

1[Explanation.––For the removal of doubts, it is hereby clarified that the expression ―services‖  includes facilitating or arranging transactions in securities;] 

(103) ―State‖ includes a Union territory with Legislature; 

(104) ―State tax‖ means the tax levied under any State Goods and Services Tax Act; 

(105) ―supplier‖ in relation to any goods or services or both, shall mean the person supplying the  said goods or services or both and shall include an agent acting as such on behalf of such supplier in  relation to the goods or services or both supplied; 

(106) ―tax period‖ means the period for which the return is required to be furnished; 

(107) ―taxable person‖ means a person who is registered or liable to be registered under  section 22 or section 24; 

(108) ―taxable supply‖ means a supply of goods or services or both which is leviable to tax under  this Act; 

(109) ―taxable territory‖ means the territory to which the provisions of this Act apply; 

(110) ―telecommunication service‖ means service of any description (including electronic mail,  voice mail, data services, audio text services, video text services, radio paging and cellular mobile  telephone services) which is made available to users by means of any transmission or reception of  signs, signals, writing, images and sounds or intelligence of any nature, by wire, radio, visual or other  electromagnetic means; 

  

  1. The explanation ins. by Act 31 of 2018, s. 2 (w.e.f. 1-2-2019).

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(111) ―the State Goods and Services Tax Act‖ means the respective State Goods and Services  Tax Act, 2017; 

(112) ―turnover in State‖ or ―turnover in Union territory‖ means the aggregate value of all taxable  supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge  basis) and exempt supplies made within a State or Union territory by a taxable person, exports of goods  or services or both and inter-State supplies of goods or services or both made from the State or Union  territory by the said taxable person but excludes central tax, State tax, Union territory tax, integrated tax  and cess; 

(113) ―usual place of residence‖ means–– 

(a) in case of an individual, the place where he ordinarily resides; 

(b) in other cases, the place where the person is incorporated or otherwise legally constituted; (114) ―Union territory‖ means the territory of— 

(a) the Andaman and Nicobar Islands; 

(b) Lakshadweep; 

(c) Dadra and Nagar Haveli; 

(d) Daman and Diu; 

(e) Chandigarh; and 

(f) other territory. 

Explanation.––For the purposes of this Act, each of the territories specified in sub-clauses (a)  to (f) shall be considered to be a separate Union territory; 

(115) ―Union territory tax‖ means the Union territory goods and services tax levied under the  Union Territory Goods and Services Tax Act; 

(116) ―Union Territory Goods and Services Tax Act‖ means the Union Territory Goods and  Services Tax Act, 2017 (14 of 2017.); 

(117) ―valid return‖ means a return furnished under sub-section (1) of section 39 on which self assessed tax has been paid in full; 

(118) ―voucher‖ means an instrument where there is an obligation to accept it as consideration or  part consideration for a supply of goods or services or both and where the goods or services or both to  be supplied or the identities of their potential suppliers are either indicated on the instrument itself or  in related documentation, including the terms and conditions of use of such instrument; 

(119) ―works contract‖ means a contract for building, construction, fabrication, completion,  erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration  or commissioning of any immovable property wherein transfer of property in goods (whether as goods  or in some other form) is involved in the execution of such contract; 

(120) words and expressions used and not defined in this Act but defined in the Integrated Goods  and Services Tax Act, the Union Territory Goods and Services Tax Act and the Goods and Services  Tax (Compensation to States) Act shall have the same meaning as assigned to them in those Acts; 

(121) any reference in this Act to a law which is not in force in the State of Jammu and Kashmir,  shall, in relation to that State be construed as a reference to the corresponding law, if any, in force in  that State.

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CHAPTER II  

ADMINISTRATION 

  1. Officers under this Act.––The Government shall, by notification, appoint the following classes of  officers for the purposes of this Act, namely:–– 

(a) Principal Chief Commissioners of Central Tax or Principal Directors General of Central Tax, (b) Chief Commissioners of Central Tax or Directors General of Central Tax, 

(c) Principal Commissioners of Central Tax or Principal Additional Directors General of Central  Tax, 

(d) Commissioners of Central Tax or Additional Directors General of Central Tax, 

(e) Additional Commissioners of Central Tax or Additional Directors of Central Tax, (f) Joint Commissioners of Central Tax or Joint Directors of Central Tax, 

(g) Deputy Commissioners of Central Tax or Deputy Directors of Central Tax, 

(h) Assistant Commissioners of Central Tax or Assistant Directors of Central Tax, and (i) any other class of officers as it may deem fit: 

Provided that the officers appointed under the Central Excise Act, 1944 (1 of 1944) shall be deemed  to be the officers appointed under the provisions of this Act. 

  1. Appointment of officers.–– (1) The Board may, in addition to the officers as may be notified by the  Government under section 3, appoint such persons as it may think fit to be the officers under this Act. 

(2) Without prejudice to the provisions of sub-section (1), the Board may, by order, authorise any  officer referred to in clauses (a) to (h) of section 3 to appoint officers of central tax below the rank of  Assistant Commissioner of central tax for the administration of this Act. 

  1. Powers of officers.––(1) Subject to such conditions and limitations as the Board may impose, an  officer of central tax may exercise the powers and discharge the duties conferred or imposed on him  under this Act. 

(2) An officer of central tax may exercise the powers and discharge the duties conferred or imposed under  this Act on any other officer of central tax who is subordinate to him. 

(3) The Commissioner may, subject to such conditions and limitations as may be specified in this  behalf by him, delegate his powers to any other officer who is subordinate to him. 

(4) Notwithstanding anything contained in this section, an Appellate Authority shall not exercise the  powers and discharge the duties conferred or imposed on any other officer of central tax. 

  1. Authorisation of officers of State tax or Union territory tax as proper officer in certain  circumstances.––(1) Without prejudice to the provisions of this Act, the officers appointed under the  State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act are authorised to  be the proper officers for the purposes of this Act, subject to such conditions as the Government shall, on  the recommendations of the Council, by notification, specify. 

(2) Subject to the conditions specified in the notification issued under sub-section (1),–– 

(a) where any proper officer issues an order under this Act, he shall also issue an order under the  State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, as authorised  by the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, as the  case may be, under intimation to the jurisdictional officer of State tax or Union territory tax; 

(b) where a proper officer under the State Goods and Services Tax Act or the Union Territory  Goods and Services Tax Act has initiated any proceedings on a subject matter, no proceedings shall  be initiated by the proper officer under this Act on the same subject matter.

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(3) Any proceedings for rectification, appeal and revision, wherever applicable, of any order passed  by an officer appointed under this Act shall not lie before an officer appointed under the State Goods and  Services Tax Act or the Union Territory Goods and Services Tax Act. 

CHAPTER III 

LEVY AND COLLECTION OF TAX 

  1. Scope of supply.––(1) For the purposes of this Act, the expression ―supply‖ includes–– 

(a) all forms of supply of goods or services or both such as sale, transfer, barter, exchange,  licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the  course or furtherance of business; 

(b) import of services for a consideration whether or not in the course or furtherance of business; 1[and] 

(c) the activities specified in Schedule I, made or agreed to be made without a consideration. 2*** 3* * * * * 

4[(1A) where certain activities or transactions constitute a supply in accordance with the provisions of  sub-section (1), they shall be treated either as supply of goods or supply of services as referred to in  Schedule II.] 

(2) Notwithstanding anything contained in sub-section (1),–– 

(a) activities or transactions specified in Schedule III; or 

(b) such activities or transactions undertaken by the Central Government, a State Government or  any local authority in which they are engaged as public authorities, as may be notified by the  Government on the recommendations of the Council, 

shall be treated neither as a supply of goods nor a supply of services. 

(3) Subject to the provisions of 5[sub-sections (1), (1A) and (2)], the Government may, on the  recommendations of the Council, specify, by notification, the transactions that are to be treated as— 

(a) a supply of goods and not as a supply of services; or 

(b) a supply of services and not as a supply of goods. 

  1. Tax liability on composite and mixed supplies.––The tax liability on a composite or a mixed  supply shall be determined in the following manner, namely:— 

(a) a composite supply comprising two or more supplies, one of which is a principal supply, shall  be treated as a supply of such principal supply; and 

(b) a mixed supply comprising two or more supplies shall be treated as a supply of that particular  supply which attracts the highest rate of tax. 

  1. Levy and collection.––(1) Subject to the provisions of sub-section (2), there shall be levied a tax  called the central goods and services tax on all intra-State supplies of goods or services or both, except on  the supply of alcoholic liquor for human consumption, on the value determined under section 15 and at  such rates, not exceeding twenty per cent., as may be notified by the Government on the  recommendations of the Council and collected in such manner as may be prescribed and shall be paid by  the taxable person. 

  

  1. Ins. by Act 31 of 2018, s. 3, (w.e.f. 1-7-2017). 
  2. The word ―and‖ omitted by s. 3, ibid., (w.e.f. 1-7-2017). 
  3. Omitted by s. 3, ibid., (w.e.f. 1-7-2017). 
  4. Ins. by s. 3, ibid.,(w.e.f. 1-7-2017). 
  5. Subs. by s. 3, ibid., for ―sub-sections (1) and (2)‖ (w.e.f. 1-7-2017).

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(2) The central tax on the supply of petroleum crude, high speed diesel, motor spirit (commonly  known as petrol), natural gas and aviation turbine fuel shall be levied with effect from such date as may  be notified by the Government on the recommendations of the Council. 

(3) The Government may, on the recommendations of the Council, by notification, specify categories  of supply of goods or services or both, the tax on which shall be paid on reverse charge basis by the  recipient of such goods or services or both and all the provisions of this Act shall apply to such recipient  as if he is the person liable for paying the tax in relation to the supply of such goods or services or both. 

1[(4) The Government may, on the recommendations of the Council, by notification, specify a class of  registered persons who shall, in respect of supply of specified categories of goods or services or both  received from an unregistered supplier, pay the tax on reverse charge basis as the recipient of such supply  of goods or services or both, and all the provisions of this Act shall apply to such recipient as if he is the 

person liable for paying the tax in relation to such supply of goods or services or both.] 

(5) The Government may, on the recommendations of the Council, by notification, specify categories of  services the tax on intra-State supplies of which shall be paid by the electronic commerce operator if such  services are supplied through it, and all the provisions of this Act shall apply to such electronic commerce  operator as if he is the supplier liable for paying the tax in relation to the supply of such services: 

Provided that where an electronic commerce operator does not have a physical presence in the taxable  territory, any person representing such electronic commerce operator for any purpose in the taxable territory  shall be liable to pay tax: 

Provided further that where an electronic commerce operator does not have a physical presence in the  taxable territory and also he does not have a representative in the said territory, such electronic commerce  operator shall appoint a person in the taxable territory for the purpose of paying tax and such person shall  be liable to pay tax. 

  1. Composition levy.––(1) Notwithstanding anything to the contrary contained in this Act but  subject to the provisions of sub-sections (3) and (4) of section 9, a registered person, whose aggregate  turnover in the preceding financial year did not exceed fifty lakh rupees, may opt to pay, 2[in lieu of the  tax payable by him under sub-section (1) of section 9, an amount of tax calculated at such rate] as may be  prescribed, but not exceeding,–– 

(a) one per cent. of the turnover in State or turnover in Union territory in case of a manufacturer, 

(b) two and a half per cent. of the turnover in State or turnover in Union territory in case of  persons engaged in making supplies referred to in clause (b) of paragraph 6 of Schedule II, and 

(c) half per cent. of the turnover in State or turnover in Union territory in case of other suppliers, subject to such conditions and restrictions as may be prescribed: 

Provided that the Government may, by notification, increase the said limit of fifty lakh rupees to such  higher amount, not exceeding 3[one crore and fifty lakh rupees], as may be recommended by the Council. 

4[Provided further that a person who opts to pay tax under clause (a) or clause (b) or clause (c) may  supply services (other than those referred to in clause (b) of paragraph 6 of Schedule II), of value not exceeding ten per cent. of turnover in a State or Union territory in the preceding financial year or five lakh  rupees, whichever is higher.] 

(2) The registered person shall be eligible to opt under sub-section (1), if:— 

5[(a) save as provided in sub-section (1), he is not engaged in the supply of services;] (b) he is not engaged in making any supply of goods which are not leviable to tax under this Act; 

  

  1. Subs. by Act 31 of 2018, s. 4 (w.e.f. 1-2-2019). 
  2. Subs. by s. 5, ibid., for ―in lieu of the tax payable by him, an amount calculated at such rate‖ (w.e.f. 1-2-2019). 3. Subs. by s. 5, ibid., for ―one crore rupees‖ (w.e.f. 1-2-2019). 
  3. The proviso ins. by s. 5, ibid., (w.e.f. 1-2-2019).  
  4. Subs. by s. 5, ibid., (w.e.f. 1-2-2019).

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(c) he is not engaged in making any inter-State outward supplies of goods; 

(d) he is not engaged in making any supply of goods through an electronic commerce operator  who is required to collect tax at source under section 52; and 

(e) he is not a manufacturer of such goods as may be notified by the Government on the  recommendations of the Council: 

Provided that where more than one registered persons are having the same Permanent Account Number  (issued under the Income-tax Act, 1961 (43 of 1961), the registered person shall not be eligible to opt for the  scheme under sub-section (1) unless all such registered persons opt to pay tax under that sub-section. 

(3) The option availed of by a registered person under sub-section (1) shall lapse with effect from the  day on which his aggregate turnover during a financial year exceeds the limit specified under  sub-section (1). 

(4) A taxable person to whom the provisions of sub-section (1) apply shall not collect any tax from  the recipient on supplies made by him nor shall he be entitled to any credit of input tax. 

(5) If the proper officer has reasons to believe that a taxable person has paid tax under sub-section (1)  despite not being eligible, such person shall, in addition to any tax that may be payable by him under any  other provisions of this Act, be liable to a penalty and the provisions of section 73 or section 74 shall,  mutatis mutandis, apply for determination of tax and penalty. 

  1. Power to grant exemption from tax.—(1) Where the Government is satisfied that it is necessary in  the public interest so to do, it may, on the recommendations of the Council, by notification, exempt generally,  either absolutely or subject to such conditions as may be specified therein, goods or services or both of any  specified description from the whole or any part of the tax leviable thereon with effect from such date as may  be specified in such notification. 

(2) Where the Government is satisfied that it is necessary in the public interest so to do, it may, on the  recommendations of the Council, by special order in each case, under circumstances of an exceptional  nature to be stated in such order, exempt from payment of tax any goods or services or both on which tax  is leviable. 

(3) The Government may, if it considers necessary or expedient so to do for the purpose of clarifying  the scope or applicability of any notification issued under sub-section (1) or order issued under sub section (2), insert an Explanation in such notification or order, as the case may be, by notification at any  time within one year of issue of the notification under sub-section (1) or order under sub-section (2), and  every such explanation shall have effect as if it had always been the part of the first such notification or  order, as the case may be. 

Explanation.––For the purposes of this section, where an exemption in respect of any goods or  services or both from the whole or part of the tax leviable thereon has been granted absolutely, the  registered person supplying such goods or services or both shall not collect the tax, in excess of the  effective rate, on such supply of goods or services or both. 

CHAPTER IV 

TIME AND VALUE OF SUPPLY 

  1. Time of supply of goods.—(1) The liability to pay tax on goods shall arise at the time of supply,  as determined in accordance with the provisions of this section. 

(2) The time of supply of goods shall be the earlier of the following dates, namely:— 

(a) the date of issue of invoice by the supplier or the last date on which he is required, under  1*** section 31, to issue the invoice with respect to the supply; or 

(b) the date on which the supplier receives the payment with respect to the supply: 

  

  1. The words and figures ―sub-section (1) of‖ omitted by Act 31 of 2018, s. 6 (w.e.f. 1-2-2019).

21 

Provided that where the supplier of taxable goods receives an amount up to one thousand rupees in  excess of the amount indicated in the tax invoice, the time of supply to the extent of such excess amount  shall, at the option of the said supplier, be the date of issue of invoice in respect of such excess amount. 

Explanation 1.––For the purposes of clauses (a) and (b), ―supply‖ shall be deemed to have been made  to the extent it is covered by the invoice or, as the case may be, the payment. 

Explanation 2.––For the purposes of clause (b), ―the date on which the supplier receives the payment‖  shall be the date on which the payment is entered in his books of account or the date on which the payment  is credited to his bank account, whichever is earlier. 

(3) In case of supplies in respect of which tax is paid or liable to be paid on reverse charge basis, the  time of supply shall be the earliest of the following dates, namely:— 

(a) the date of the receipt of goods; or 

(b) the date of payment as entered in the books of account of the recipient or the date on which the  payment is debited in his bank account, whichever is earlier; or 

(c) the date immediately following thirty days from the date of issue of invoice or any other  document, by whatever name called, in lieu thereof by the supplier: 

Provided that where it is not possible to determine the time of supply under clause (a) or clause (b) or  clause (c), the time of supply shall be the date of entry in the books of account of the recipient of supply. 

(4) In case of supply of vouchers by a supplier, the time of supply shall be— 

(a) the date of issue of voucher, if the supply is identifiable at that point; or 

(b) the date of redemption of voucher, in all other cases. 

(5) Where it is not possible to determine the time of supply under the provisions of sub-section (2) or  sub-section (3) or sub-section (4), the time of supply shall–– 

(a) in a case where a periodical return has to be filed, be the date on which such return is to be  filed; or 

(b) in any other case, be the date on which the tax is paid. 

(6) The time of supply to the extent it relates to an addition in the value of supply by way of interest,  late fee or penalty for delayed payment of any consideration shall be the date on which the supplier  receives such addition in value. 

  1. Time of supply of services.—(1) The liability to pay tax on services shall arise at the time of  supply, as determined in accordance with the provisions of this section. 

(2) The time of supply of services shall be the earliest of the following dates, namely:— 

(a) the date of issue of invoice by the supplier, if the invoice is issued within the period  prescribed under 1*** section 31 or the date of receipt of payment, whichever is earlier; or 

(b) the date of provision of service, if the invoice is not issued within the period prescribed under  1*** section 31 or the date of receipt of payment, whichever is earlier; or 

(c) the date on which the recipient shows the receipt of services in his books of account, in a case  where the provisions of clause (a) or clause (b) do not apply: 

Provided that where the supplier of taxable service receives an amount up to one thousand rupees in  excess of the amount indicated in the tax invoice, the time of supply to the extent of such excess amount  shall, at the option of the said supplier, be the date of issue of invoice relating to such excess amount. 

Explanation.––For the purposes of clauses (a) and (b)–– 

(i) the supply shall be deemed to have been made to the extent it is covered by the invoice or, as  the case may be, the payment; 

  

  1. The words and figures ―sub-section (2) of‖ omitted by Act 31 of 2018, s. 7 (w.e.f. 1-2-2019).

22 

(ii) ―the date of receipt of payment‖ shall be the date on which the payment is entered in the  books of account of the supplier or the date on which the payment is credited to his bank account,  whichever is earlier. 

(3) In case of supplies in respect of which tax is paid or liable to be paid on reverse charge basis, the  time of supply shall be the earlier of the following dates, namely:–– 

(a) the date of payment as entered in the books of account of the recipient or the date on which the  payment is debited in his bank account, whichever is earlier; or 

(b) the date immediately following sixty days from the date of issue of invoice or any other  document, by whatever name called, in lieu thereof by the supplier: 

Provided that where it is not possible to determine the time of supply under clause (a) or clause (b),  the time of supply shall be the date of entry in the books of account of the recipient of supply: 

Provided further that in case of supply by associated enterprises, where the supplier of service is  located outside India, the time of supply shall be the date of entry in the books of account of the recipient  of supply or the date of payment, whichever is earlier. 

(4) In case of supply of vouchers by a supplier, the time of supply shall be–– 

(a) the date of issue of voucher, if the supply is identifiable at that point; or 

(b) the date of redemption of voucher, in all other cases. 

(5) Where it is not possible to determine the time of supply under the provisions of sub-section (2) or  sub-section (3) or sub-section (4), the time of supply shall–– 

(a) in a case where a periodical return has to be filed, be the date on which such return is to be  filed; or 

(b) in any other case, be the date on which the tax is paid. 

(6) The time of supply to the extent it relates to an addition in the value of supply by way of interest,  late fee or penalty for delayed payment of any consideration shall be the date on which the supplier  receives such addition in value. 

  1. Change in rate of tax in respect of supply of goods or services.—Notwithstanding anything  contained in section 12 or section 13, the time of supply, where there is a change in the rate of tax in  respect of goods or services or both, shall be determined in the following manner, namely:–– 

(a) in case the goods or services or both have been supplied before the change in rate of tax,–– 

(i) where the invoice for the same has been issued and the payment is also received after the  change in rate of tax, the time of supply shall be the date of receipt of payment or the date of issue of  invoice, whichever is earlier; or 

(ii) where the invoice has been issued prior to the change in rate of tax but payment is  received after the change in rate of tax, the time of supply shall be the date of issue of invoice; or 

(iii) where the payment has been received before the change in rate of tax, but the invoice for  the same is issued after the change in rate of tax, the time of supply shall be the date of receipt of  payment; 

(b) in case the goods or services or both have been supplied after the change in rate of tax,–– 

(i) where the payment is received after the change in rate of tax but the invoice has been  issued prior to the change in rate of tax, the time of supply shall be the date of receipt of payment;  or 

(ii) where the invoice has been issued and payment is received before the change in rate of  tax, the time of supply shall be the date of receipt of payment or date of issue of invoice,  whichever is earlier; or

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(iii) where the invoice has been issued after the change in rate of tax but the payment is  received before the change in rate of tax, the time of supply shall be the date of issue of invoice: 

Provided that the date of receipt of payment shall be the date of credit in the bank account if  such credit in the bank account is after four working days from the date of change in the rate of  tax. 

Explanation.––For the purposes of this section, ―the date of receipt of payment‖ shall be the date on  which the payment is entered in the books of account of the supplier or the date on which the payment is  credited to his bank account, whichever is earlier. 

  1. Value of taxable supply.—(1) The value of a supply of goods or services or both shall be the  transaction value, which is the price actually paid or payable for the said supply of goods or services or  both where the supplier and the recipient of the supply are not related and the price is the sole  consideration for the supply. 

(2) The value of supply shall include–– 

(a) any taxes, duties, cesses, fees and charges levied under any law for the time being in force  other than this Act, the State Goods and Services Tax Act, the Union Territory Goods and Services  Tax Act and the Goods and Services Tax (Compensation to States) Act, if charged separately by the  supplier; 

(b) any amount that the supplier is liable to pay in relation to such supply but which has been  incurred by the recipient of the supply and not included in the price actually paid or payable for the  goods or services or both; 

(c) incidental expenses, including commission and packing, charged by the supplier to the  recipient of a supply and any amount charged for anything done by the supplier in respect of the  supply of goods or services or both at the time of, or before delivery of goods or supply of services; 

(d) interest or late fee or penalty for delayed payment of any consideration for any supply; and 

(e) subsidies directly linked to the price excluding subsidies provided by the Central Government  and the State Governments. 

Explanation.––For the purposes of this sub-section, the amount of subsidy shall be included in the  value of supply of the supplier who receives the subsidy. 

(3) The value of the supply shall not include any discount which is given–– 

(a) before or at the time of the supply if such discount has been duly recorded in the invoice  issued in respect of such supply; and 

(b) after the supply has been effected, if— 

(i) such discount is established in terms of an agreement entered into at or before the time of such supply and specifically linked to relevant invoices; and 

(ii) input tax credit as is attributable to the discount on the basis of document issued by the  supplier has been reversed by the recipient of the supply. 

(4) Where the value of the supply of goods or services or both cannot be determined under  sub-section (1), the same shall be determined in such manner as may be prescribed. 

(5) Notwithstanding anything contained in sub-section (1) or sub-section (4), the value of such  supplies as may be notified by the Government on the recommendations of the Council shall be  determined in such manner as may be prescribed. 

Explanation.—For the purposes of this Act,–– 

(a) persons shall be deemed to be ―related persons‖ if–– 

(i) such persons are officers or directors of one another‘s businesses; 

(ii) such persons are legally recognised partners in business;

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(iii) such persons are employer and employee; 

(iv) any person directly or indirectly owns, controls or holds twenty-five per cent. or more of  the outstanding voting stock or shares of both of them; 

(v) one of them directly or indirectly controls the other; 

(vi) both of them are directly or indirectly controlled by a third person; 

(vii) together they directly or indirectly control a third person; or 

(viii) they are members of the same family; 

(b) the term ―person‖ also includes legal persons; 

(c) persons who are associated in the business of one another in that one is the sole agent or sole  distributor or sole concessionaire, howsoever described, of the other, shall be deemed to be related. 

CHAPTER V 

INPUT TAX CREDIT 

  1. Eligibility and conditions for taking input tax credit.—(1) Every registered person shall,  subject to such conditions and restrictions as may be prescribed and in the manner specified in section 49,  be entitled to take credit of input tax charged on any supply of goods or services or both to him which are  used or intended to be used in the course or furtherance of his business and the said amount shall be  credited to the electronic credit ledger of such person. 

(2) Notwithstanding anything contained in this section, no registered person shall be entitled to the  credit of any input tax in respect of any supply of goods or services or both to him unless,–– 

(a) he is in possession of a tax invoice or debit note issued by a supplier registered under this Act, or  such other tax paying documents as may be prescribed; 

(b) he has received the goods or services or both. 

1[Explanation.—For the purposes of this clause, it shall be deemed that the registered person has received  the goods or, as the case may be, services–– 

(i) where the goods are delivered by the supplier to a recipient or any other person on the direction of such  registered person, whether acting as an agent or otherwise, before or during movement of goods, either by way  of transfer of documents of title to goods or otherwise; 

(ii) where the services are provided by the supplier to any person on the direction of and on account of  such registered person.] 

(c) subject to the provisions of section 41, the tax charged in respect of such supply has been  actually paid to the Government, either in cash or through utilisation of input tax credit admissible in  respect of the said supply; and 

(d) he has furnished the return under section 39: 

Provided that where the goods against an invoice are received in lots or instalments, the registered  person shall be entitled to take credit upon receipt of the last lot or instalment: 

Provided further that where a recipient fails to pay to the supplier of goods or services or both, other than  the supplies on which tax is payable on reverse charge basis, the amount towards the value of supply along  with tax payable thereon within a period of one hundred and eighty days from the date of issue of invoice  by the supplier, an amount equal to the input tax credit availed by the recipient shall be added to his  output tax liability, along with interest thereon, in such manner as may be prescribed: 

Provided also that the recipient shall be entitled to avail of the credit of input tax on payment made by  him of the amount towards the value of supply of goods or services or both along with tax payable  thereon. 

  

  1. The explanation subs. by Act 31 of 2018, s. 8 (w.e.f. 1-2-2018).

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(3) Where the registered person has claimed depreciation on the tax component of the cost of capital  goods and plant and machinery under the provisions of the Income-tax Act, 1961(43 of 1961), the input  tax credit on the said tax component shall not be allowed. 

(4) A registered person shall not be entitled to take input tax credit in respect of any invoice or debit note  for supply of goods or services or both after the due date of furnishing of the return under section 39 for the  month of September following the end of financial year to which such invoice or invoice relating to such  debit note pertains or furnishing of the relevant annual return, whichever is earlier. 

  1. Apportionment of credit and blocked credits.—(1) Where the goods or services or both are used  by the registered person partly for the purpose of any business and partly for other purposes, the amount of  credit shall be restricted to so much of the input tax as is attributable to the purposes of his business. 

(2) Where the goods or services or both are used by the registered person partly for effecting taxable  supplies including zero-rated supplies under this Act or under the Integrated Goods and Services Tax Act and  partly for effecting exempt supplies under the said Acts, the amount of credit shall be restricted to so much of  the input tax as is attributable to the said taxable supplies including zero-rated supplies. 

(3) The value of exempt supply under sub-section (2) shall be such as may be prescribed, and shall  include supplies on which the recipient is liable to pay tax on reverse charge basis, transactions in  securities, sale of land and, subject to clause (b) of paragraph 5 of Schedule II, sale of building. 

1[Explanation.—For the purposes of this sub-section, the expression ‗‗value of exempt supply‘‘ shall  not include the value of activities or transactions specified in Schedule III, except those specified in  paragraph 5 of the said Schedule.] 

(4) A banking company or a financial institution including a non-banking financial company, engaged  in supplying services by way of accepting deposits, extending loans or advances shall have the option to  either comply with the provisions of sub-section (2), or avail of, every month, an amount equal to fifty per  cent. of the eligible input tax credit on inputs, capital goods and input services in that month and the rest  shall lapse: 

Provided that the option once exercised shall not be withdrawn during the remaining part of the  financial year: 

Provided further that the restriction of fifty per cent. shall not apply to the tax paid on supplies made  by one registered person to another registered person having the same Permanent Account Number. 

(5) Notwithstanding anything contained in sub-section (1) of section 16 and sub-section (1) of  section 18, input tax credit shall not be available in respect of the following, namely:— 

2[(a) motor vehicles for transportation of persons having approved seating capacity of not more  than thirteen persons (including the driver), except when they are used for making the following  taxable supplies, namely:— 

(A) further supply of such motor vehicles; or 

(B) transportation of passengers; or 

(C) imparting training on driving such motor vehicles; 

(aa) vessels and aircraft except when they are used–– 

(i) for making the following taxable supplies, namely:— 

(A) further supply of such vessels or aircraft; or 

(B) transportation of passengers; or 

(C) imparting training on navigating such vessels; or 

  

  1. The explanation ins. by Act 31 of 2018, s. 9, (w.e.f. 1-2-2019). 
  2. The clauses (a) and (b) subs. by s. 9, ibid., (w.e.f. 1-2-2019).

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(D) imparting training on flying such aircraft; 

(ii) for transportation of goods;  

(ab) services of general insurance, servicing, repair and maintenance in so far as they relate to  motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa): 

Provided that the input tax credit in respect of such services shall be available— 

(i) where the motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa) are  used for the purposes specified therein; 

(ii) where received by a taxable person engaged— 

(I) in the manufacture of such motor vehicles, vessels or aircraft; or 

(II) in the supply of general insurance services in respect of such motor vehicles, vessels  or aircraft insured by him; 

(b) the following supply of goods or services or both— 

(i) food and beverages, outdoor catering, beauty treatment, health services, cosmetic and  plastic surgery, leasing, renting or hiring of motor vehicles, vessels or aircraft referred to in clause  (a) or clause (aa) except when used for the purposes specified therein, life insurance and health insurance: 

Provided that the input tax credit in respect of such goods or services or both shall be  available where an inward supply of such goods or services or both is used by a registered person  for making an outward taxable supply of the same category of goods or services or both or as an  element of a taxable composite or mixed supply; 

(ii) membership of a club, health and fitness centre; and 

(iii) travel benefits extended to employees on vacation such as leave or home travel  concession: 

Provided that the input tax credit in respect of such goods or services or both shall be  available, where it is obligatory for an employer to provide the same to its employees under any  law for the time being in force.] 

(c) works contract services when supplied for construction of an immovable property (other than  plant and machinery) except where it is an input service for further supply of works contract service; 

(d) goods or services or both received by a taxable person for construction of an immovable property  (other than plant or machinery) on his own account including when such goods or services or both are  used in the course or furtherance of business. 

Explanation.––For the purposes of clauses (c) and (d), the expression ―construction‖ includes re construction, renovation, additions or alterations or repairs, to the extent of capitalisation, to the said  immovable property; 

(e) goods or services or both on which tax has been paid under section 10; 

(f) goods or services or both received by a non-resident taxable person except on goods imported  by him; 

(g) goods or services or both used for personal consumption; 

(h) goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples; and (i) any tax paid in accordance with the provisions of sections 74, 129 and 130. 

(6) The Government may prescribe the manner in which the credit referred to in sub-sections (1)  and (2) may be attributed. 

Explanation.––For the purposes of this Chapter and Chapter VI, the expression ―plant and machinery‖  means apparatus, equipment, and machinery fixed to earth by foundation or structural support that are used for 

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making outward supply of goods or services or both and includes such foundation and structural supports but  excludes— 

(i) land, building or any other civil structures; 

(ii) telecommunication towers; and 

(iii) pipelines laid outside the factory premises. 

  1. Availability of credit in special circumstances.—(1) Subject to such conditions and restrictions  as may be prescribed— 

(a) a person who has applied for registration under this Act within thirty days from the date on  which he becomes liable to registration and has been granted such registration shall be entitled to take  credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished  goods held in stock on the day immediately preceding the date from which he becomes liable to pay  tax under the provisions of this Act; 

(b) a person who takes registration under sub-section (3) of section 25 shall be entitled to take  credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished  goods held in stock on the day immediately preceding the date of grant of registration; 

(c) where any registered person ceases to pay tax under section 10, he shall be entitled to take credit of  input tax in respect of inputs held in stock, inputs contained in semi-finished or finished goods held in stock  and on capital goods on the day immediately preceding the date from which he becomes liable to pay tax  under section 9: 

Provided that the credit on capital goods shall be reduced by such percentage points as may be  prescribed; 

(d) where an exempt supply of goods or services or both by a registered person becomes a taxable  supply, such person shall be entitled to take credit of input tax in respect of inputs held in stock and  inputs contained in semi-finished or finished goods held in stock relatable to such exempt supply and on  capital goods exclusively used for such exempt supply on the day immediately preceding the date from  which such supply becomes taxable: 

Provided that the credit on capital goods shall be reduced by such percentage points as may be  prescribed. 

(2) A registered person shall not be entitled to take input tax credit under sub-section (1) in respect of  any supply of goods or services or both to him after the expiry of one year from the date of issue of tax  invoice relating to such supply. 

(3) Where there is a change in the constitution of a registered person on account of sale, merger, demerger,  amalgamation, lease or transfer of the business with the specific provisions for transfer of liabilities, the said  registered person shall be allowed to transfer the input tax credit which remains unutilised in his electronic  credit ledger to such sold, merged, demerged, amalgamated, leased or transferred business in such manner as  may be prescribed. 

(4) Where any registered person who has availed of input tax credit opts to pay tax under section 10 or,  where the goods or services or both supplied by him become wholly exempt, he shall pay an amount, by  way of debit in the electronic credit ledger or electronic cash ledger, equivalent to the credit of input tax in  respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock and on  capital goods, reduced by such percentage points as may be prescribed, on the day immediately preceding  the date of exercising of such option or, as the case may be, the date of such exemption: 

Provided that after payment of such amount, the balance of input tax credit, if any, lying in his  electronic credit ledger shall lapse. 

(5) The amount of credit under sub-section (1) and the amount payable under sub-section (4) shall be  calculated in such manner as may be prescribed. 

(6) In case of supply of capital goods or plant and machinery, on which input tax credit has been taken,  the registered person shall pay an amount equal to the input tax credit taken on the said capital goods or plant 

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and machinery reduced by such percentage points as may be prescribed or the tax on the transaction value of  such capital goods or plant and machinery determined under section 15, whichever is higher: 

Provided that where refractory bricks, moulds and dies, jigs and fixtures are supplied as scrap, the  taxable person may pay tax on the transaction value of such goods determined under section 15. 

  1. Taking input tax credit in respect of inputs and capital goods sent for job work.—(1) The  principal shall, subject to such conditions and restrictions as may be prescribed, be allowed input tax  credit on inputs sent to a job worker for job work. 

(2) Notwithstanding anything contained in clause (b) of sub-section (2) of section 16, the principal shall be  entitled to take credit of input tax on inputs even if the inputs are directly sent to a job worker for job work  without being first brought to his place of business. 

(3) Where the inputs sent for job work are not received back by the principal after completion of job  work or otherwise or are not supplied from the place of business of the job worker in accordance with  clause (a) or clause (b) of sub-section (1) of section 143 within one year of being sent out, it shall be  deemed that such inputs had been supplied by the principal to the job worker on the day when the said  inputs were sent out: 

Provided that where the inputs are sent directly to a job worker, the period of one year shall be  counted from the date of receipt of inputs by the job worker. 

(4) The principal shall, subject to such conditions and restrictions as may be prescribed, be allowed input  tax credit on capital goods sent to a job worker for job work. 

(5) Notwithstanding anything contained in clause (b) of sub-section (2) of section 16, the principal  shall be entitled to take credit of input tax on capital goods even if the capital goods are directly sent to a  job worker for job work without being first brought to his place of business. 

(6) Where the capital goods sent for job work are not received back by the principal within a period of  three years of being sent out, it shall be deemed that such capital goods had been supplied by the principal  to the job worker on the day when the said capital goods were sent out: 

Provided that where the capital goods are sent directly to a job worker, the period of three years shall  be counted from the date of receipt of capital goods by the job worker. 

(7) Nothing contained in sub-section (3) or sub-section (6) shall apply to moulds and dies, jigs and  fixtures, or tools sent out to a job worker for job work. 

Explanation.––For the purpose of this section, ―principal‖ means the person referred to in  section 143. 

  1. Manner of distribution of credit by Input Service Distributor.—(1) The Input Service  Distributor shall distribute the credit of central tax as central tax or integrated tax and integrated tax as  integrated tax or central tax, by way of issue of a document containing the amount of input tax credit  being distributed in such manner as may be prescribed. 

(2) The Input Service Distributor may distribute the credit subject to the following conditions,  namely:–– 

(a) the credit can be distributed to the recipients of credit against a document containing such  details as may be prescribed; 

(b) the amount of the credit distributed shall not exceed the amount of credit available for  distribution; 

(c) the credit of tax paid on input services attributable to a recipient of credit shall be distributed  only to that recipient; 

(d) the credit of tax paid on input services attributable to more than one recipient of credit shall be  distributed amongst such recipients to whom the input service is attributable and such distribution  shall be pro rata on the basis of the turnover in a State or turnover in a Union territory of such  recipient, during the relevant period, to the aggregate of the turnover of all such recipients to whom 

29 

such input service is attributable and which are operational in the current year, during the said  relevant period; 

(e) the credit of tax paid on input services attributable to all recipients of credit shall be distributed  amongst such recipients and such distribution shall be pro rata on the basis of the turnover in a State or turnover in a Union territory of such recipient, during the relevant period, to the aggregate of the  turnover of all recipients and which are operational in the current year, during the said relevant period. 

Explanation.––For the purposes of this section,–– 

(a) the ―relevant period‖ shall be–– 

(i) if the recipients of credit have turnover in their States or Union territories in the financial  year preceding the year during which credit is to be distributed, the said financial year; or 

(ii) if some or all recipients of the credit do not have any turnover in their States or Union  territories in the financial year preceding the year during which the credit is to be distributed, the last  quarter for which details of such turnover of all the recipients are available, previous to the month  during which credit is to be distributed; 

(b) the expression ―recipient of credit‖ means the supplier of goods or services or both having the  same Permanent Account Number as that of the Input Service Distributor; 

(c) the term ―turnover‖, in relation to any registered person engaged in the supply of taxable goods  as well as goods not taxable under this Act, means the value of turnover, reduced by the amount of any  duty or tax levied 1[under entry 84 and 92A] of List I of the Seventh Schedule to the Constitution and  entries 51 and 54 of List II of the said Schedule. 

  1. Manner of recovery of credit distributed in excess.—Where the Input Service Distributor  distributes the credit in contravention of the provisions contained in section 20 resulting in excess  distribution of credit to one or more recipients of credit, the excess credit so distributed shall be  recovered from such recipients along with interest, and the provisions of section 73 or section 74, as  the case may be, shall, mutatis mutandis, apply for determination of amount to be recovered. 

CHAPTER VI  

REGISTRATION 

  1. Persons liable for registration.—(1) Every supplier shall be liable to be registered under this Act  in the State or Union territory, other than special category States, from where he makes a taxable supply  of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees: 

Provided that where such person makes taxable supplies of goods or services or both from any of the  special category States, he shall be liable to be registered if his aggregate turnover in a financial year  exceeds ten lakh rupees. 

2[Provided further that the Government may, at the request of a special category State and on the  recommendations of the Council, enhance the aggregate turnover referred to in the first proviso from ten  lakh rupees to such amount, not exceeding twenty lakh rupees and subject to such conditions and  limitations, as may be so notified.] 

(2) Every person who, on the day immediately preceding the appointed day, is registered or holds a  licence under an existing law, shall be liable to be registered under this Act with effect from the appointed  day. 

(3) Where a business carried on by a taxable person registered under this Act is transferred, whether  on account of succession or otherwise, to another person as a going concern, the transferee or the  successor, as the case may be, shall be liable to be registered with effect from the date of such transfer or  succession. 

  

  1. Subs. by Act 31 of 2018, s. 10, for ―under entry 84‖ (w.e.f. 1-2-2019). 
  2. The proviso ins. by s. 11, ibid., (w.e.f. 1-2-2019). 

30 

(4) Notwithstanding anything contained in sub-sections (1) and (3), in a case of transfer pursuant to  sanction of a scheme or an arrangement for amalgamation or, as the case may be, demerger of two or more  companies pursuant to an order of a High Court, Tribunal or otherwise, the transferee shall be liable to be  registered, with effect from the date on which the Registrar of Companies issues a certificate of  incorporation giving effect to such order of the High Court or Tribunal. 

Explanation.––For the purposes of this section,–– 

(i) the expression ―aggregate turnover‖ shall include all supplies made by the taxable person,  whether on his own account or made on behalf of all his principals; 

(ii) the supply of goods, after completion of job work, by a registered job worker shall be treated  as the supply of goods by the principal referred to in section 143, and the value of such goods shall  not be included in the aggregate turnover of the registered job worker; 

(iii) the expression ―special category States‖ shall mean the States as specified in sub-clause (g)  of clause (4) of article 279A of the Constitution 1[except the State of Jammu and Kashmir]2[and  States of Arunachal Pradesh, Assam, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand‖]. 

  1. Persons not liable for registration.—(1) The following persons shall not be liable to registration,  namely:–– 

(a) any person engaged exclusively in the business of supplying goods or services or both that are  not liable to tax or wholly exempt from tax under this Act or under the Integrated Goods and Services  Tax Act; 

(b) an agriculturist, to the extent of supply of produce out of cultivation of land. 

(2) The Government may, on the recommendations of the Council, by notification, specify the  category of persons who may be exempted from obtaining registration under this Act. 

  1. Compulsory registration in certain cases.—Notwithstanding anything contained in  sub-section (1) of section 22, the following categories of persons shall be required to be registered under  this Act,–– 

(i) persons making any inter-State taxable supply; 

(ii) casual taxable persons making taxable supply; 

(iii) persons who are required to pay tax under reverse charge; 

(iv) person who are required to pay tax under sub-section (5) of section 9; 

(v) non-resident taxable persons making taxable supply; 

(vi) persons who are required to deduct tax under section 51, whether or not separately registered  under this Act; 

(vii) persons who make taxable supply of goods or services or both on behalf of other taxable  persons whether as an agent or otherwise; 

(viii) Input Service Distributor, whether or not separately registered under this Act; 

(ix) persons who supply goods or services or both, other than supplies specified under  sub-section (5) of section 9, through such electronic commerce operator who is required to collect tax  at source under section 52; 

(x) every electronic commerce operator 3[who is required to collect tax at source under section  52]; 

  

  1. Ins. by Act 26 of 2017, s. 2 (w.e.f. 8-7-2017). 
  2. Ins. by Act 31 of 2018, s. 11 (w.e.f. 1-2-2019).  
  3. Ins. by Act 31 of 2018, s. 12, (w.e.f. 1-2-2019).

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(xi) every person supplying online information and database access or retrieval services from a  place outside India to a person in India, other than a registered person; and 

(xii) such other person or class of persons as may be notified by the Government on the  recommendations of the Council. 

  1. Procedure for registration.—(1) Every person who is liable to be registered under section 22 or  section 24 shall apply for registration in every such State or Union territory in which he is so liable within  thirty days from the date on which he becomes liable to registration, in such manner and subject to such  conditions as may be prescribed: 

Provided that a casual taxable person or a non-resident taxable person shall apply for registration at  least five days prior to the commencement of business. 

1[Provided further that a person having a unit, as defined in the Special Economic Zones Act, 2005, in  a Special Economic Zone or being a Special Economic Zone developer shall have to apply for a separate  registration, as distinct from his place of business located outside the Special Economic Zone in the same  State or Union territory.] 

Explanation.—Every person who makes a supply from the territorial waters of India shall obtain  registration in the coastal State or Union territory where the nearest point of the appropriate baseline is  located. 

(2) A person seeking registration under this Act shall be granted a single registration in a State or  Union territory: 

2[Provided that a person having multiple places of business in a State or Union territory may be  granted a separate registration for each such place of business, subject to such conditions as may be  prescribed.] 

(3) A person, though not liable to be registered under section 22 or section 24 may get himself  registered voluntarily, and all provisions of this Act, as are applicable to a registered person, shall apply to  such person. 

(4) A person who has obtained or is required to obtain more than one registration, whether in one  State or Union territory or more than one State or Union territory shall, in respect of each such  registration, be treated as distinct persons for the purposes of this Act. 

(5) Where a person who has obtained or is required to obtain registration in a State or Union territory  in respect of an establishment, has an establishment in another State or Union territory, then such  establishments shall be treated as establishments of distinct persons for the purposes of this Act. 

(6) Every person shall have a Permanent Account Number issued under the Income-tax Act, 1961  (43 of 1961) in order to be eligible for grant of registration: 

Provided that a person required to deduct tax under section 51 may have, in lieu of a Permanent  Account Number, a Tax Deduction and Collection Account Number issued under the said Act in order to  be eligible for grant of registration. 

(7) Notwithstanding anything contained in sub-section (6), a non-resident taxable person may be  granted registration under sub-section (1) on the basis of such other documents as may be prescribed. 

(8) Where a person who is liable to be registered under this Act fails to obtain registration, the proper  officer may, without prejudice to any action which may be taken under this Act or under any other law for  the time being in force, proceed to register such person in such manner as may be prescribed. 

(9) Notwithstanding anything contained in sub-section (1),–– 

(a) any specialised agency of the United Nations Organisation or any Multilateral Financial  Institution and Organisation notified under the United Nations (Privileges and Immunities) Act, 1947  (46 of 1947), Consulate or Embassy of foreign countries; and 

  

  1. The proviso ins. by s.13, ibid., (w.e.f. 1-2-2019). 
  2. The proviso ins. by s.13, ibid., (w.e.f. 1-2-2019).

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(b) any other person or class of persons, as may be notified by the Commissioner, 

shall be granted a Unique Identity Number in such manner and for such purposes, including refund of  taxes on the notified supplies of goods or services or both received by them, as may be prescribed. 

(10) The registration or the Unique Identity Number shall be granted or rejected after due verification  in such manner and within such period as may be prescribed. 

(11) A certificate of registration shall be issued in such form and with effect from such date as may be  prescribed. 

(12) A registration or a Unique Identity Number shall be deemed to have been granted after the expiry  of the period prescribed under sub-section (10), if no deficiency has been communicated to the applicant  within that period. 

  1. Deemed registration.—(1) The grant of registration or the Unique Identity Number under the State  Goods and Services Tax Act or the Union Territory Goods and Services Tax Act shall be deemed to be a  grant of registration or the Unique Identity Number under this Act subject to the condition that the application  for registration or the Unique Identity Number has not been rejected under this Act within the time specified  in sub-section (10) of section 25. 

(2) Notwithstanding anything contained in sub-section (10) of section 25, any rejection of application  for registration or the Unique Identity Number under the State Goods and Services Tax Act or the Union  Territory Goods and Services Tax Act shall be deemed to be a rejection of application for registration  under this Act. 

  1. Special provisions relating to casual taxable person and non-resident taxable person.—(1)  The certificate of registration issued to a casual taxable person or a non-resident taxable person shall be  valid for the period specified in the application for registration or ninety days from the effective date of  registration, whichever is earlier and such person shall make taxable supplies only after the issuance of  the certificate of registration: 

Provided that the proper officer may, on sufficient cause being shown by the said taxable person,  extend the said period of ninety days by a further period not exceeding ninety days. 

(2) A casual taxable person or a non-resident taxable person shall, at the time of submission of  application for registration under sub-section (1) of section 25, make an advance deposit of tax in an  amount equivalent to the estimated tax liability of such person for the period for which the registration is  sought: 

Provided that where any extension of time is sought under sub-section (1), such taxable person shall  deposit an additional amount of tax equivalent to the estimated tax liability of such person for the period  for which the extension is sought. 

(3) The amount deposited under sub-section (2) shall be credited to the electronic cash ledger of  such person and shall be utilised in the manner provided under section 49. 

  1. Amendment of registration.—(1) Every registered person and a person to whom a Unique  Identity Number has been assigned shall inform the proper officer of any changes in the information  furnished at the time of registration or subsequent thereto, in such form and manner and within such  period as may be prescribed. 

(2) The proper officer may, on the basis of information furnished under sub-section (1) or as  ascertained by him, approve or reject amendments in the registration particulars in such manner and  within such period as may be prescribed: 

Provided that approval of the proper officer shall not be required in respect of amendment of such  particulars as may be prescribed: 

Provided further that the proper officer shall not reject the application for amendment in the registration  particulars without giving the person an opportunity of being heard.

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(3) Any rejection or approval of amendments under the State Goods and Services Tax Act or the  Union Territory Goods and Services Tax Act, as the case may be, shall be deemed to be a rejection or  approval under this Act. 

  1. Cancellation 1[or suspension] of registration.—(1) The proper officer may, either on his own  motion or on an application filed by the registered person or by his legal heirs, in case of death of such  person, cancel the registration, in such manner and within such period as may be prescribed, having  regard to the circumstances where,–– 

(a) the business has been discontinued, transferred fully for any reason including death of the  proprietor, amalgamated with other legal entity, demerged or otherwise disposed of; or 

(b) there is any change in the constitution of the business; or 

(c) the taxable person, other than the person registered under sub-section (3) of section 25, is no  longer liable to be registered under section 22 or section 24. 

2[Provided that during pendency of the proceedings relating to cancellation of registration filed by  the registered person, the registration may be suspended for such period and in such manner as may  be prescribed.] 

(2) The proper officer may cancel the registration of a person from such date, including any  retrospective date, as he may deem fit, where,–– 

(a) a registered person has contravened such provisions of the Act or the rules made thereunder as  may be prescribed; or 

(b) a person paying tax under section 10 has not furnished returns for three consecutive tax  periods; or 

(c) any registered person, other than a person specified in clause (b), has not furnished returns for  a continuous period of six months; or 

(d) any person who has taken voluntary registration under sub-section (3) of section 25 has not  commenced business within six months from the date of registration; or 

(e) registration has been obtained by means of fraud, wilful misstatement or suppression of facts: 

Provided that the proper officer shall not cancel the registration without giving the person an  opportunity of being heard. 

3[Provided further that during pendency of the proceedings relating to cancellation of registration, the  proper officer may suspend the registration for such period and in such manner as may be prescribed.] 

(3) The cancellation of registration under this section shall not affect the liability of the person to pay tax  and other dues under this Act or to discharge any obligation under this Act or the rules made thereunder for  any period prior to the date of cancellation whether or not such tax and other dues are determined before or  after the date of cancellation. 

(4) The cancellation of registration under the State Goods and Services Tax Act or the Union  Territory Goods and Services Tax Act, as the case may be, shall be deemed to be a cancellation of  registration under this Act. 

(5) Every registered person whose registration is cancelled shall pay an amount, by way of debit in the  electronic credit ledger or electronic cash ledger, equivalent to the credit of input tax in respect of inputs  held in stock and inputs contained in semi-finished or finished goods held in stock or capital goods or plant  and machinery on the day immediately preceding the date of such cancellation or the output tax payable on  such goods, whichever is higher, calculated in such manner as may be prescribed: 

  

  1. Ins. by Act 31 of 2018, s. 14 (w.e.f. 1-2-2019). 
  2. The proviso ins. by s. 14, ibid., (w.e.f. 1-2-2019).  
  3. The proviso ins. by s. 14, ibid., (w.e.f. 1-2-2019). 

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Provided that in case of capital goods or plant and machinery, the taxable person shall pay an amount  equal to the input tax credit taken on the said capital goods or plant and machinery, reduced by such  percentage points as may be prescribed or the tax on the transaction value of such capital goods or plant  and machinery under section 15, whichever is higher. 

(6) The amount payable under sub-section (5) shall be calculated in such manner as may be  prescribed. 

  1. Revocation of cancellation of registration.—(1) Subject to such conditions as may be prescribed,  any registered person, whose registration is cancelled by the proper officer on his own motion, may apply to such officer for revocation of cancellation of the registration in the prescribed manner within thirty days from  the date of service of the cancellation order. 

(2) The proper officer may, in such manner and within such period as may be prescribed, by order, either  revoke cancellation of the registration or reject the application: 

Provided that the application for revocation of cancellation of registration shall not be rejected unless  the applicant has been given an opportunity of being heard. 

(3) The revocation of cancellation of registration under the State Goods and Services Tax Act or the  Union Territory Goods and Services Tax Act, as the case may be, shall be deemed to be a revocation of  cancellation of registration under this Act. 

CHAPTER VII 

TAX INVOICE, CREDIT AND DEBIT NOTES 

  1. Tax invoice.—(1) A registered person supplying taxable goods shall, before or at the time of,— 

(a) removal of goods for supply to the recipient, where the supply involves movement of goods;  or 

(b) delivery of goods or making available thereof to the recipient, in any other case, 

issue a tax invoice showing the description, quantity and value of goods, the tax charged thereon and such  other particulars as may be prescribed: 

Provided that the Government may, on the recommendations of the Council, by notification, specify  the categories of goods or supplies in respect of which a tax invoice shall be issued, within such time and  in such manner as may be prescribed. 

(2) A registered person supplying taxable services shall, before or after the provision of service but  within a prescribed period, issue a tax invoice, showing the description, value, tax charged thereon and such  other particulars as may be prescribed: 

Provided that the Government may, on the recommendations of the Council, by notification and  subject to such conditions as may be mentioned therein, specify the categories of services in respect of  which–– 

(a) any other document issued in relation to the supply shall be deemed to be a tax invoice; or (b) tax invoice may not be issued. 

(3) Notwithstanding anything contained in sub-sections (1) and (2)–– 

(a) a registered person may, within one month from the date of issuance of certificate of registration  and in such manner as may be prescribed, issue a revised invoice against the invoice already issued during  the period beginning with the effective date of registration till the date of issuance of certificate of  registration to him; 

(b) a registered person may not issue a tax invoice if the value of the goods or services or both  supplied is less than two hundred rupees subject to such conditions and in such manner as may be  prescribed;

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(c) a registered person supplying exempted goods or services or both or paying tax under the  provisions of section 10 shall issue, instead of a tax invoice, a bill of supply containing such particulars  and in such manner as may be prescribed: 

Provided that the registered person may not issue a bill of supply if the value of the goods or  services or both supplied is less than two hundred rupees subject to such conditions and in such  manner as may be prescribed; 

(d) a registered person shall, on receipt of advance payment with respect to any supply of goods or  services or both, issue a receipt voucher or any other document, containing such particulars as may be  prescribed, evidencing receipt of such payment; 

(e) where, on receipt of advance payment with respect to any supply of goods or services or both  the registered person issues a receipt voucher, but subsequently no supply is made and no tax invoice  is issued in pursuance thereof, the said registered person may issue to the person who had made the  payment, a refund voucher against such payment; 

(f) a registered person who is liable to pay tax under sub-section (3) or sub-section (4) of  section 9 shall issue an invoice in respect of goods or services or both received by him from the  supplier who is not registered on the date of receipt of goods or services or both; 

(g) a registered person who is liable to pay tax under sub-section (3) or sub-section (4) of  section 9 shall issue a payment voucher at the time of making payment to the supplier. 

(4) In case of continuous supply of goods, where successive statements of accounts or successive  payments are involved, the invoice shall be issued before or at the time each such statement is issued or,  as the case may be, each such payment is received. 

(5) Subject to the provisions of clause (d) of sub-section (3), in case of continuous supply of  services,–– 

(a) where the due date of payment is ascertainable from the contract, the invoice shall be issued  on or before the due date of payment; 

(b) where the due date of payment is not ascertainable from the contract, the invoice shall be  issued before or at the time when the supplier of service receives the payment; 

(c) where the payment is linked to the completion of an event, the invoice shall be issued on or  before the date of completion of that event. 

(6) In a case where the supply of services ceases under a contract before the completion of the supply,  the invoice shall be issued at the time when the supply ceases and such invoice shall be issued to the  extent of the supply made before such cessation. 

(7) Notwithstanding anything contained in sub-section (1), where the goods being sent or taken on  approval for sale or return are removed before the supply takes place, the invoice shall be issued before or  at the time of supply or six months from the date of removal, whichever is earlier. 

Explanation.––For the purposes of this section, the expression ―tax invoice‖ shall include any revised  invoice issued by the supplier in respect of a supply made earlier. 

  1. Prohibition of unauthorised collection of tax.—(1) A person who is not a registered person  shall not collect in respect of any supply of goods or services or both any amount by way of tax under this  Act. 

(2) No registered person shall collect tax except in accordance with the provisions of this Act or the  rules made thereunder. 

  1. Amount of tax to be indicated in tax invoice and other documents.—Notwithstanding  anything contained in this Act or any other law for the time being in force, where any supply is made for a  consideration, every person who is liable to pay tax for such supply shall prominently indicate in all  documents relating to assessment, tax invoice and other like documents, the amount of tax which shall  form part of the price at which such supply is made.

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  1. Credit and debit notes.—(1) 1[Where one or more tax invoices have] been issued for supply of  any goods or services or both and the taxable value or tax charged in that tax invoice is found to exceed  the taxable value or tax payable in respect of such supply, or where the goods supplied are returned by the  recipient, or where goods or services or both supplied are found to be deficient, the registered person, who  has supplied such goods or services or both, may issue to the recipient 2[one or more credit notes for supplies made in a financial year] containing such particulars as may be prescribed. 

(2) Any registered person who issues a credit note in relation to a supply of goods or services or both  shall declare the details of such credit note in the return for the month during which such credit note has  been issued but not later than September following the end of the financial year in which such supply was  made, or the date of furnishing of the relevant annual return, whichever is earlier, and the tax liability  shall be adjusted in such manner as may be prescribed: 

Provided that no reduction in output tax liability of the supplier shall be permitted, if the incidence of  tax and interest on such supply has been passed on to any other person. 

(3) 3[Where one or more tax invoices have] been issued for supply of any goods or services or both  and the taxable value or tax charged in that tax invoice is found to be less than the taxable value or tax  payable in respect of such supply, the registered person, who has supplied such goods or services or both,  shall issue to the recipient 4[one or more credit notes for supplies made in a financial year] containing  such particulars as may be prescribed. 

(4) Any registered person who issues a debit note in relation to a supply of goods or services or both  shall declare the details of such debit note in the return for the month during which such debit note has  been issued and the tax liability shall be adjusted in such manner as may be prescribed. 

Explanation.––For the purposes of this Act, the expression ―debit note‖ shall include a supplementary  invoice. 

CHAPTER VIII 

ACCOUNTS AND RECORDS 

  1. Accounts and other records.—(1) Every registered person shall keep and maintain, at his  principal place of business, as mentioned in the certificate of registration, a true and correct account of— 

(a) production or manufacture of goods; 

(b) inward and outward supply of goods or services or both; 

(c) stock of goods; 

(d) input tax credit availed; 

(e) output tax payable and paid; and 

(f) such other particulars as may be prescribed: 

Provided that where more than one place of business is specified in the certificate of registration, the  accounts relating to each place of business shall be kept at such places of business: 

Provided further that the registered person may keep and maintain such accounts and other particulars  in electronic form in such manner as may be prescribed. 

(2) Every owner or operator of warehouse or godown or any other place used for storage of goods and  every transporter, irrespective of whether he is a registered person or not, shall maintain records of the  consigner, consignee and other relevant details of the goods in such manner as may be prescribed. 

(3) The Commissioner may notify a class of taxable persons to maintain additional accounts or  documents for such purpose as may be specified therein. 

  

  1. Subs. by Act 31 of 2018, s. 15, for ―Where a tax invoice has‖ (w.e.f. 1-2-2019). 
  2. Subs. by s. 15, ibid., for ―a credit note‖ (w.e.f. 1-2-2019). 
  3. Subs. by s. 15, ibid., for ―Where a tax invoice has‖ (w.e.f. 1-2-2019). 
  4. Subs. by s. 15, ibid., (w.e.f. 1-2-2019).

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(4) Where the Commissioner considers that any class of taxable person is not in a position to keep  and maintain accounts in accordance with the provisions of this section, he may, for reasons to be  recorded in writing, permit such class of taxable persons to maintain accounts in such manner as may be  prescribed. 

(5) Every registered person whose turnover during a financial year exceeds the prescribed limit shall get  his accounts audited by a chartered accountant or a cost accountant and shall submit a copy of the audited  annual accounts, the reconciliation statement under sub-section (2) of section 44 and such other  documents in such form and manner as may be prescribed. 

1[Provided that nothing contained in this sub-section shall apply to any department of the Central  Government or a State Government or a local authority, whose books of account are subject to audit by  the Comptroller and Auditor-General of India or an auditor appointed for auditing the accounts of local  authorities under any law for the time being in force.] 

(6) Subject to the provisions of clause (h) of sub-section (5) of section 17, where the registered  person fails to account for the goods or services or both in accordance with the provisions of sub section (1), the proper officer shall determine the amount of tax payable on the goods or services or both that are not accounted for, as if such goods or services or both had been supplied by such person  and the provisions of section 73 or section 74, as the case may be, shall, mutatis mutandis, apply for  determination of such tax. 

  1. Period of retention of accounts.—Every registered person required to keep and maintain books  of account or other records in accordance with the provisions of sub-section (1) of section 35 shall retain  them until the expiry of seventy-two months from the due date of furnishing of annual return for the year  pertaining to such accounts and records: 

Provided that a registered person, who is a party to an appeal or revision or any other proceedings  before any Appellate Authority or Revisional Authority or Appellate Tribunal or court, whether filed by him  or by the Commissioner, or is under investigation for an offence under Chapter XIX, shall retain the books  of account and other records pertaining to the subject matter of such appeal or revision or proceedings or  investigation for a period of one year after final disposal of such appeal or revision or proceedings or  investigation, or for the period specified above, whichever is later. 

CHAPTER IX  

RETURNS 

  1. Furnishing details of outward supplies.—(1) Every registered person, other than an Input  Service Distributor, a non-resident taxable person and a person paying tax under the provisions of section  10 or section 51 or section 52, shall furnish, electronically, in such form and manner as may be  prescribed, the details of outward supplies of goods or services or both effected during a tax period on or  before the tenth day of the month succeeding the said tax period and such details shall be communicated  to the recipient of the said supplies within such time and in such manner as may be prescribed: 

Provided that the registered person shall not be allowed to furnish the details of outward supplies  during the period from the eleventh day to the fifteenth day of the month succeeding the tax period: 

Provided further that the Commissioner may, for reasons to be recorded in writing, by notification,  extend the time limit for furnishing such details for such class of taxable persons as may be specified  therein: 

Provided also that any extension of time limit notified by the Commissioner of State tax or  Commissioner of Union territory tax shall be deemed to be notified by the Commissioner. 

(2) Every registered person who has been communicated the details under sub-section (3) of  section 38 or the details pertaining to inward supplies of Input Service Distributor under sub-section (4)  of section 38, shall either accept or reject the details so communicated, on or before the seventeenth day,  but not before the fifteenth day, of the month succeeding the tax period and the details furnished by him  under sub-section (1) shall stand amended accordingly. 

  

  1. The proviso ins. by Act 31 of 2018, s. 16 (w.e.f. 1-2-2019).

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(3) Any registered person, who has furnished the details under sub-section (1) for any tax period and  which have remained unmatched under section 42 or section 43, shall, upon discovery of any error or  omission therein, rectify such error or omission in such manner as may be prescribed, and shall pay the  tax and interest, if any, in case there is a short payment of tax on account of such error or omission, in the  return to be furnished for such tax period: 

Provided that no rectification of error or omission in respect of the details furnished under  sub-section (1) shall be allowed after furnishing of the return under section 39 for the month of September  following the end of the financial year to which such details pertain, or furnishing of the relevant annual  return, whichever is earlier. 

Explanation.––For the purposes of this Chapter, the expression ―details of outward supplies‖ shall  include details of invoices, debit notes, credit notes and revised invoices issued in relation to outward  supplies made during any tax period. 

  1. Furnishing details of inward supplies.—(1) Every registered person, other than an Input Service  Distributor or a non-resident taxable person or a person paying tax under the provisions of section 10 or  section 51 or section 52, shall verify, validate, modify or delete, if required, the details relating to outward  supplies and credit or debit notes communicated under sub-section (1) of section 37 to prepare the details  of his inward supplies and credit or debit notes and may include therein, the details of inward supplies and  credit or debit notes received by him in respect of such supplies that have not been declared by the  supplier under sub-section (1) of section 37. 

(2) Every registered person, other than an Input Service Distributor or a non-resident taxable person  or a person paying tax under the provisions of section 10 or section 51 or section 52, shall furnish,  electronically, the details of inward supplies of taxable goods or services or both, including inward  supplies of goods or services or both on which the tax is payable on reverse charge basis under this Act  and inward supplies of goods or services or both taxable under the Integrated Goods and Services Tax Act  or on which integrated goods and services tax is payable under section 3 of the Customs Tariff Act, 1975  (51 of 1975), and credit or debit notes received in respect of such supplies during a tax period after the  tenth day but on or before the fifteenth day of the month succeeding the tax period in such form and  manner as may be prescribed: 

Provided that the Commissioner may, for reasons to be recorded in writing, by notification, extend  the time limit for furnishing such details for such class of taxable persons as may be specified therein: 

Provided further that any extension of time limit notified by the Commissioner of State tax or Commissioner  of Union territory tax shall be deemed to be notified by the Commissioner. 

(3) The details of supplies modified, deleted or included by the recipient and furnished under  sub-section (2) shall be communicated to the supplier concerned in such manner and within such time as  may be prescribed. 

(4) The details of supplies modified, deleted or included by the recipient in the return furnished  under sub-section (2) or sub-section (4) of section 39 shall be communicated to the supplier concerned  in such manner and within such time as may be prescribed. 

(5) Any registered person, who has furnished the details under sub-section (2) for any tax period and  which have remained unmatched under section 42 or section 43, shall, upon discovery of any error or  omission therein, rectify such error or omission in the tax period during which such error or omission is  noticed in such manner as may be prescribed, and shall pay the tax and interest, if any, in case there is a short  payment of tax on account of such error or omission, in the return to be furnished for such tax period: 

Provided that no rectification of error or omission in respect of the details furnished under  sub-section (2) shall be allowed after furnishing of the return under section 39 for the month of September  following the end of the financial year to which such details pertain, or furnishing of the relevant annual  return, whichever is earlier. 

  1. Furnishing of returns.—(1) Every registered person, other than an Input Service Distributor or a  non-resident taxable person or a person paying tax under the provisions of section 10 or section 51 or  section 52 shall, for every calendar month or part thereof, furnish, in such form and manner as may be 

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prescribed, a return, electronically, of inward and outward supplies of goods or services or both, input tax  credit availed, tax payable, tax paid and such other particulars as may be prescribed, on or before the  twentieth day of the month succeeding such calendar month or part thereof. 

(2) A registered person paying tax under the provisions of section 10 shall, for each quarter or part thereof,  furnish, in such form and manner as may be prescribed, a return, electronically, of turnover in the State or  Union territory, inward supplies of goods or services or both, tax payable and tax paid within eighteen days  after the end of such quarter. 

(3) Every registered person required to deduct tax at source under the provisions of section 51 shall  furnish, in such form and manner as may be prescribed, a return, electronically, for the month in which  such deductions have been made within ten days after the end of such month. 

(4) Every taxable person registered as an Input Service Distributor shall, for every calendar month or  part thereof, furnish, in such form and manner as may be prescribed, a return, electronically, within  thirteen days after the end of such month. 

(5) Every registered non-resident taxable person shall, for every calendar month or part thereof,  furnish, in such form and manner as may be prescribed, a return, electronically, within twenty days after  the end of a calendar month or within seven days after the last day of the period of registration specified  under sub-section (1) of section 27, whichever is earlier. 

(6) The Commissioner may, for reasons to be recorded in writing, by notification, extend the time  limit for furnishing the returns under this section for such class of registered persons as may be specified  therein: 

Provided that any extension of time limit notified by the Commissioner of State tax or Union territory  tax shall be deemed to be notified by the Commissioner. 

(7) Every registered person, who is required to furnish a return under sub-section (1) or  sub-section (2) or sub-section (3) or sub-section (5), shall pay to the Government the tax due as per such  return not later than the last date on which he is required to furnish such return. 

(8) Every registered person who is required to furnish a return under sub-section (1) or sub-section (2)  shall furnish a return for every tax period whether or not any supplies of goods or services or both have  been made during such tax period. 

(9) Subject to the provisions of sections 37 and 38, if any registered person after furnishing a return  under sub-section (1) or sub-section (2) or sub-section (3) or sub-section (4) or sub-section (5) discovers  any omission or incorrect particulars therein, other than as a result of scrutiny, audit, inspection or  enforcement activity by the tax authorities, he shall rectify such omission or incorrect particulars in the  return to be furnished for the month or quarter during which such omission or incorrect particulars are  noticed, subject to payment of interest under this Act: 

Provided that no such rectification of any omission or incorrect particulars shall be allowed after the  due date for furnishing of return for the month of September or second quarter following the end of the  financial year, or the actual date of furnishing of relevant annual return, whichever is earlier. 

(10) A registered person shall not be allowed to furnish a return for a tax period if the return for any  of the previous tax periods has not been furnished by him. 

  1. First return.—Every registered person who has made outward supplies in the period between the  date on which he became liable to registration till the date on which registration has been granted shall  declare the same in the first return furnished by him after grant of registration. 
  2. Claim of input tax credit and provisional acceptance thereof.—(1) Every registered person  shall, subject to such conditions and restrictions as may be prescribed, be entitled to take the credit of  eligible input tax, as self-assessed, in his return and such amount shall be credited on a provisional basis  to his electronic credit ledger. 

(2) The credit referred to in sub-section (1) shall be utilised only for payment of self-assessed output  tax as per the return referred to in the said sub-section.

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  1. Matching, reversal and reclaim of input tax credit.—(1) The details of every inward supply  furnished by a registered person (hereafter in this section referred to as the ―recipient‖) for a tax period shall,  in such manner and within such time as may be prescribed, be matched–– 

(a) with the corresponding details of outward supply furnished by the corresponding registered  person (hereafter in this section referred to as the ―supplier‖) in his valid return for the same tax  period or any preceding tax period; 

(b) with the integrated goods and services tax paid under section 3 of the Customs Tariff  Act, 1975 (51 of 1975) in respect of goods imported by him; and 

(c) for duplication of claims of input tax credit. 

(2) The claim of input tax credit in respect of invoices or debit notes relating to inward supply that  match with the details of corresponding outward supply or with the integrated goods and services tax paid  under section 3 of the Customs Tariff Act, 1975 (51 of 1975) in respect of goods imported by him shall be  finally accepted and such acceptance shall be communicated, in such manner as may be prescribed, to the  recipient. 

(3) Where the input tax credit claimed by a recipient in respect of an inward supply is in excess of the  tax declared by the supplier for the same supply or the outward supply is not declared by the supplier in  his valid returns, the discrepancy shall be communicated to both such persons in such manner as may be  prescribed. 

(4) The duplication of claims of input tax credit shall be communicated to the recipient in such  manner as may be prescribed. 

(5) The amount in respect of which any discrepancy is communicated under sub-section (3) and  which is not rectified by the supplier in his valid return for the month in which discrepancy is  communicated shall be added to the output tax liability of the recipient, in such manner as may be  prescribed, in his return for the month succeeding the month in which the discrepancy is communicated. 

(6) The amount claimed as input tax credit that is found to be in excess on account of duplication of  claims shall be added to the output tax liability of the recipient in his return for the month in which the  duplication is communicated. 

(7) The recipient shall be eligible to reduce, from his output tax liability, the amount added under  sub-section (5), if the supplier declares the details of the invoice or debit note in his valid return within the  time specified in sub-section (9) of section 39. 

(8) A recipient in whose output tax liability any amount has been added under sub-section (5) or  sub-section (6), shall be liable to pay interest at the rate specified under sub-section (1) of section 50 on  the amount so added from the date of availing of credit till the corresponding additions are made under  the said sub-sections. 

(9) Where any reduction in output tax liability is accepted under sub-section (7), the interest paid under  sub-section (8) shall be refunded to the recipient by crediting the amount in the corresponding head of his  electronic cash ledger in such manner as may be prescribed: 

Provided that the amount of interest to be credited in any case shall not exceed the amount of interest  paid by the supplier. 

(10) The amount reduced from the output tax liability in contravention of the provisions of sub section (7) shall be added to the output tax liability of the recipient in his return for the month in which  such contravention takes place and such recipient shall be liable to pay interest on the amount so added at  the rate specified in sub-section (3) of section 50. 

  1. Matching, reversal and reclaim of reduction in output tax liability.—(1) The details of every  credit note relating to outward supply furnished by a registered person (hereafter in this section referred to  as the ―supplier‖) for a tax period shall, in such manner and within such time as may be prescribed, be  matched––

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(a) with the corresponding reduction in the claim for input tax credit by the corresponding registered  person (hereafter in this section referred to as the ―recipient‖) in his valid return for the same tax period or  any subsequent tax period; and 

(b) for duplication of claims for reduction in output tax liability. 

(2) The claim for reduction in output tax liability by the supplier that matches with the corresponding  reduction in the claim for input tax credit by the recipient shall be finally accepted and communicated, in  such manner as may be prescribed, to the supplier. 

(3) Where the reduction of output tax liability in respect of outward supplies exceeds the corresponding  reduction in the claim for input tax credit or the corresponding credit note is not declared by the recipient in  his valid returns, the discrepancy shall be communicated to both such persons in such manner as may be  prescribed. 

(4) The duplication of claims for reduction in output tax liability shall be communicated to the  supplier in such manner as may be prescribed. 

(5) The amount in respect of which any discrepancy is communicated under sub-section (3) and  which is not rectified by the recipient in his valid return for the month in which discrepancy is  communicated shall be added to the output tax liability of the supplier, in such manner as may be  prescribed, in his return for the month succeeding the month in which the discrepancy is communicated. 

(6) The amount in respect of any reduction in output tax liability that is found to be on account of  duplication of claims shall be added to the output tax liability of the supplier in his return for the month in  which such duplication is communicated. 

(7) The supplier shall be eligible to reduce, from his output tax liability, the amount added under sub section (5) if the recipient declares the details of the credit note in his valid return within the time  specified in sub-section (9) of section 39. 

(8) A supplier in whose output tax liability any amount has been added under sub-section (5) or sub section (6), shall be liable to pay interest at the rate specified under sub-section (1) of section 50 in respect  of the amount so added from the date of such claim for reduction in the output tax liability till the  corresponding additions are made under the said sub-sections. 

(9) Where any reduction in output tax liability is accepted under sub-section (7), the interest paid under  sub-section (8) shall be refunded to the supplier by crediting the amount in the corresponding head of his  electronic cash ledger in such manner as may be prescribed: 

Provided that the amount of interest to be credited in any case shall not exceed the amount of interest  paid by the recipient. 

(10) The amount reduced from output tax liability in contravention of the provisions of  sub-section (7) shall be added to the output tax liability of the supplier in his return for the month in  which such contravention takes place and such supplier shall be liable to pay interest on the amount so  added at the rate specified in sub-section (3) of section 50. 

  1. Annual return.—(1) Every registered person, other than an Input Service Distributor, a person  paying tax under section 51 or section 52, a casual taxable person and a non-resident taxable person, shall  furnish an annual return for every financial year electronically in such form and manner as may be prescribed  on or before the thirty-first day of December following the end of such financial year. 

(2) Every registered person who is required to get his accounts audited in accordance with the  provisions of sub-section (5) of section 35 shall furnish, electronically, the annual return under  sub-section (1) along with a copy of the audited annual accounts and a reconciliation statement, reconciling  the value of supplies declared in the return furnished for the financial year with the audited annual financial  statement, and such other particulars as may be prescribed. 

  1. Final return.—Every registered person who is required to furnish a return under sub-section (1)  of section 39 and whose registration has been cancelled shall furnish a final return within three months of  the date of cancellation or date of order of cancellation, whichever is later, in such form and manner as  may be prescribed.

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  1. Notice to return defaulters.—Where a registered person fails to furnish a return under section  39 or section 44 or section 45, a notice shall be issued requiring him to furnish such return within fifteen  days in such form and manner as may be prescribed. 
  2. Levy of late fee.—(1) Any registered person who fails to furnish the details of outward or  inward supplies required under section 37 or section 38 or returns required under section 39 or section  45 by the due date shall pay a late fee of one hundred rupees for every day during which such failure  continues subject to a maximum amount of five thousand rupees. 

(2) Any registered person who fails to furnish the return required under section 44 by the due date  shall be liable to pay a late fee of one hundred rupees for every day during which such failure continues  subject to a maximum of an amount calculated at a quarter per cent. of his turnover in the State or Union  territory. 

  1. Goods and services tax practitioners.—(1) The manner of approval of goods and services tax  practitioners, their eligibility conditions, duties and obligations, manner of removal and other conditions  relevant for their functioning shall be such as may be prescribed. 

(2) A registered person may authorise an approved goods and services tax practitioner to furnish the  details of outward supplies under section 37, the details of inward supplies under section 38 and the return  under section 39 or section 44 or section 45 1[and to perform such other functions] in such manner as may  be prescribed. 

(3) Notwithstanding anything contained in sub-section (2), the responsibility for correctness of any  particulars furnished in the return or other details filed by the goods and services tax practitioners shall  continue to rest with the registered person on whose behalf such return and details are furnished. 

CHAPTER X  

PAYMENT OF TAX 

  1. Payment of tax, interest, penalty and other amounts.—(1) Every deposit made towards tax,  interest, penalty, fee or any other amount by a person by internet banking or by using credit or debit cards  or National Electronic Fund Transfer or Real Time Gross Settlement or by such other mode and subject to  such conditions and restrictions as may be prescribed, shall be credited to the electronic cash ledger of  such person to be maintained in such manner as may be prescribed. 

(2) The input tax credit as self-assessed in the return of a registered person shall be credited to his  electronic credit ledger, in accordance with section 41, to be maintained in such manner as may be  prescribed. 

(3) The amount available in the electronic cash ledger may be used for making any payment towards  tax, interest, penalty, fees or any other amount payable under the provisions of this Act or the rules made  thereunder in such manner and subject to such conditions and within such time as may be prescribed. 

(4) The amount available in the electronic credit ledger may be used for making any payment towards  output tax under this Act or under the Integrated Goods and Services Tax Act in such manner and subject to  such conditions and within such time as may be prescribed. 

(5) The amount of input tax credit available in the electronic credit ledger of the registered person on  account of–– 

(a) integrated tax shall first be utilised towards payment of integrated tax and the amount  remaining, if any, may be utilised towards the payment of central tax and State tax, or as the case may  be, Union territory tax, in that order; 

(b) the central tax shall first be utilised towards payment of central tax and the amount remaining, if  any, may be utilised towards the payment of integrated tax; 

(c) the State tax shall first be utilised towards payment of State tax and the amount remaining, if  any, may be utilised towards payment of integrated tax; 

  

  1. Ins. by Act 31 of 2018, s. 19 (w.e.f. 1-2-2019).

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1[Provided that the input tax credit on account of State tax shall be utilised towards payment of  integrated tax only where the balance of the input tax credit on account of central tax is not available  for payment of integrated tax;] 

(d) the Union territory tax shall first be utilised towards payment of Union territory tax and the amount  remaining, if any, may be utilised towards payment of integrated tax; 

2[Provided that the input tax credit on account of Union territory tax shall be utilised towards payment of  integrated tax only where the balance of the input tax credit on account of central tax is not available for  payment of integrated tax;] 

(e) the central tax shall not be utilised towards payment of State tax or Union territory tax; and (f) the State tax or Union territory tax shall not be utilised towards payment of central tax. 

(6) The balance in the electronic cash ledger or electronic credit ledger after payment of tax, interest,  penalty, fee or any other amount payable under this Act or the rules made thereunder may be refunded in  accordance with the provisions of section 54. 

(7) All liabilities of a taxable person under this Act shall be recorded and maintained in an electronic  liability register in such manner as may be prescribed. 

(8) Every taxable person shall discharge his tax and other dues under this Act or the rules made  thereunder in the following order, namely:–– 

(a) self-assessed tax, and other dues related to returns of previous tax periods; 

(b) self-assessed tax, and other dues related to the return of the current tax period; 

(c) any other amount payable under this Act or the rules made thereunder including the demand  determined under section 73 or section 74. 

(9) Every person who has paid the tax on goods or services or both under this Act shall, unless the  contrary is proved by him, be deemed to have passed on the full incidence of such tax to the recipient of  such goods or services or both. 

Explanation.––For the purposes of this section,— 

(a) the date of credit to the account of the Government in the authorised bank shall be deemed to  be the date of deposit in the electronic cash ledger; 

(b) the expression,— 

(i) ―tax dues‖ means the tax payable under this Act and does not include interest, fee and  penalty; and 

(ii) ―other dues‖ means interest, penalty, fee or any other amount payable under this Act or  the rules made thereunder. 

3[49A. Utilisation of input tax credit subject to certain conditions.— Notwithstanding anything  contained in section 49, the input tax credit on account of central tax, State tax or Union territory tax shall be  utilised towards payment of integrated tax, central tax, State tax or Union territory tax, as the case may be, only after the input tax credit available on account of integrated tax has first been utilised fully towards such  payment. 

49B. Order of utilisation of input tax credit.—Notwithstanding anything contained in this Chapter and subject to the provisions of clause (e) and clause (f) of sub-section (5) of section 49, the Government may, on  the recommendations of the Council, prescribe the order and manner of utilisation of the input tax credit on  account of integrated tax, central tax, State tax or Union territory tax, as the case may be, towards payment of  any such tax.] 

  

  1. The proviso ins. by Act 31 of 2018, s. 20 (w.e.f. 1-2-2019). 
  2. The proviso ins. by s. 20., ibid., (w.e.f. 1-2-2019). 
  3. Ins. by s. 21, ibid., (w.e.f. 1-2-2019).

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  1. Interest on delayed payment of tax.—(1) Every person who is liable to pay tax in accordance with  the provisions of this Act or the rules made thereunder, but fails to pay the tax or any part thereof to the  Government within the period prescribed, shall for the period for which the tax or any part thereof remains  unpaid, pay, on his own, interest at such rate, not exceeding eighteen per cent., as may be notified by the  Government on the recommendations of the Council. 

(2) The interest under sub-section (1) shall be calculated, in such manner as may be prescribed, from  the day succeeding the day on which such tax was due to be paid. 

(3) A taxable person who makes an undue or excess claim of input tax credit under sub-section (10) of  section 42 or undue or excess reduction in output tax liability under sub-section (10) of section 43, shall  pay interest on such undue or excess claim or on such undue or excess reduction, as the case may be, at  such rate not exceeding twenty-four per cent., as may be notified by the Government on the  recommendations of the Council. 

  1. Tax deduction at source.—(1) Notwithstanding anything to the contrary contained in this Act,  the Government may mandate,–– 

(a) a department or establishment of the Central Government or State Government; or (b) local authority; or 

(c) Governmental agencies; or 

(d) such persons or category of persons as may be notified by the Government on the  recommendations of the Council, 

(hereafter in this section referred to as ―the deductor‖), to deduct tax at the rate of one per cent. from the  payment made or credited to the supplier (hereafter in this section referred to as ―the deductee‖) of  taxable goods or services or both, where the total value of such supply, under a contract, exceeds two lakh  and fifty thousand rupees: 

Provided that no deduction shall be made if the location of the supplier and the place of supply is in a  State or Union territory which is different from the State or as the case may be, Union territory of  registration of the recipient. 

Explanation.––For the purpose of deduction of tax specified above, the value of supply shall be taken  as the amount excluding the central tax, State tax, Union territory tax, integrated tax and cess indicated in  the invoice. 

(2) The amount deducted as tax under this section shall be paid to the Government by the deductor  within ten days after the end of the month in which such deduction is made, in such manner as may be  prescribed. 

(3) The deductor shall furnish to the deductee a certificate mentioning therein the contract value, rate  of deduction, amount deducted, amount paid to the Government and such other particulars in such manner  as may be prescribed. 

(4) If any deductor fails to furnish to the deductee the certificate, after deducting the tax at source,  within five days of crediting the amount so deducted to the Government, the deductor shall pay, by way  of a late fee, a sum of one hundred rupees per day from the day after the expiry of such five days period  until the failure is rectified, subject to a maximum amount of five thousand rupees. 

(5) The deductee shall claim credit, in his electronic cash ledger, of the tax deducted and reflected in  the return of the deductor furnished under sub-section (3) of section 39, in such manner as may be  prescribed. 

(6) If any deductor fails to pay to the Government the amount deducted as tax under sub-section (1),  he shall pay interest in accordance with the provisions of sub-section (1) of section 50, in addition to the  amount of tax deducted. 

(7) The determination of the amount in default under this section shall be made in the manner  specified in section 73 or section 74.

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(8)The refund to the deductor or the deductee arising on account of excess or erroneous deduction  shall be dealt with in accordance with the provisions of section 54: 

Provided that no refund to the deductor shall be granted, if the amount deducted has been credited to  the electronic cash ledger of the deductee. 

  1. Collection of tax at source.—(1) Notwithstanding anything to the contrary contained in this Act,  every electronic commerce operator (hereafter in this section referred to as the ―operator‖), not being an  agent, shall collect an amount calculated at such rate not exceeding one per cent., as may be notified by  the Government on the recommendations of the Council, of the net value of taxable supplies made  through it by other suppliers where the consideration with respect to such supplies is to be collected by  the operator. 

Explanation.––For the purposes of this sub-section, the expression ―net value of taxable supplies‖  shall mean the aggregate value of taxable supplies of goods or services or both, other than services  notified under sub-section (5) of section 9, made during any month by all registered persons through the  operator reduced by the aggregate value of taxable supplies returned to the suppliers during the said  month. 

(2) The power to collect the amount specified in sub-section (1) shall be without prejudice to any  other mode of recovery from the operator. 

(3) The amount collected under sub-section (1) shall be paid to the Government by the operator  within ten days after the end of the month in which such collection is made, in such manner as may be  prescribed. 

(4) Every operator who collects the amount specified in sub-section (1) shall furnish a statement,  electronically, containing the details of outward supplies of goods or services or both effected through it,  including the supplies of goods or services or both returned through it, and the amount collected under  sub-section (1) during a month, in such form and manner as may be prescribed, within ten days after the  end of such month. 

(5) Every operator who collects the amount specified in sub-section (1) shall furnish an annual  statement, electronically, containing the details of outward supplies of goods or services or both effected  through it, including the supplies of goods or services or both returned through it, and the amount  collected under the said sub-section during the financial year, in such form and manner as may be  prescribed, before the thirty first day of December following the end of such financial year. 

(6) If any operator after furnishing a statement under sub-section (4) discovers any omission or  incorrect particulars therein, other than as a result of scrutiny, audit, inspection or enforcement activity by  the tax authorities, he shall rectify such omission or incorrect particulars in the statement to be furnished  for the month during which such omission or incorrect particulars are noticed, subject to payment of  interest, as specified in sub-section (1) of section 50: 

Provided that no such rectification of any omission or incorrect particulars shall be allowed after the due  date for furnishing of statement for the month of September following the end of the financial year or the  actual date of furnishing of the relevant annual statement, whichever is earlier. 

(7) The supplier who has supplied the goods or services or both through the operator shall claim  credit, in his electronic cash ledger, of the amount collected and reflected in the statement of the operator  furnished under sub-section (4), in such manner as may be prescribed. 

(8) The details of supplies furnished by every operator under sub-section (4) shall be matched with the  corresponding details of outward supplies furnished by the concerned supplier registered under this Act in such  manner and within such time as may be prescribed. 

(9) Where the details of outward supplies furnished by the operator under sub-section (4) do not  match with the corresponding details furnished by the supplier under 1[section 37 or section 39], the  discrepancy shall be communicated to both persons in such manner and within such time as may be  prescribed. 

  

  1. Subs. by Act 31 of 2018, s. 22 for ―section 37‖ (w.e.f. 1-2-2019).

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(10) The amount in respect of which any discrepancy is communicated under sub-section (9) and  which is not rectified by the supplier in his valid return or the operator in his statement for the month in  which discrepancy is communicated, shall be added to the output tax liability of the said supplier, where  the value of outward supplies furnished by the operator is more than the value of outward supplies  furnished by the supplier, in his return for the month succeeding the month in which the discrepancy is  communicated in such manner as may be prescribed. 

(11) The concerned supplier, in whose output tax liability any amount has been added under sub section (10), shall pay the tax payable in respect of such supply along with interest, at the rate specified  under sub-section (1) of section 50 on the amount so added from the date such tax was due till the date of  its payment. 

(12) Any authority not below the rank of Deputy Commissioner may serve a notice, either before or  during the course of any proceedings under this Act, requiring the operator to furnish such details relating  to— 

(a) supplies of goods or services or both effected through such operator during any period; or 

(b) stock of goods held by the suppliers making supplies through such operator in the godowns or  warehouses, by whatever name called, managed by such operator and declared as additional places of  business by such suppliers, 

as may be specified in the notice. 

(13) Every operator on whom a notice has been served under sub-section (12) shall furnish the  required information within fifteen working days of the date of service of such notice. 

(14) Any person who fails to furnish the information required by the notice served under  sub-section (12) shall, without prejudice to any action that may be taken under section 122, be liable to a  penalty which may extend to twenty-five thousand rupees. 

Explanation.—For the purposes of this section, the expression ―concerned supplier‖ shall mean the  supplier of goods or services or both making supplies through the operator. 

  1. Transfer of input tax credit.—On utilisation of input tax credit availed under this Act for  payment of tax dues under the Integrated Goods and Services Tax Act in accordance with the provisions  of sub-section (5) of section 49, as reflected in the valid return furnished under sub-section (1) of section  39, the amount collected as central tax shall stand reduced by an amount equal to such credit so utilised  and the Central Government shall transfer an amount equal to the amount so reduced from the central tax  account to the integrated tax account in such manner and within such time as may be prescribed. 

CHAPTER XI  

REFUNDS 

  1. Refund of tax.—(1) Any person claiming refund of any tax and interest, if any, paid on such tax  or any other amount paid by him, may make an application before the expiry of two years from the  relevant date in such form and manner as may be prescribed: 

Provided that a registered person, claiming refund of any balance in the electronic cash ledger in  accordance with the provisions of sub-section (6) of section 49, may claim such refund in the return  furnished under section 39 in such manner as may be prescribed. 

(2) A specialised agency of the United Nations Organisation or any Multilateral Financial Institution and  Organisation notified under the United Nations (Privileges and Immunities) Act, 1947 (46 of 1947), Consulate or  Embassy of foreign countries or any other person or class of persons, as notified under section 55, entitled to a  refund of tax paid by it on inward supplies of goods or services or both, may make an application for such refund,  in such form and manner as may be prescribed, before the expiry of six months from the last day of the quarter in  which such supply was received. 

(3) Subject to the provisions of sub-section (10), a registered person may claim refund of any  unutilised input tax credit at the end of any tax period: 

Provided that no refund of unutilised input tax credit shall be allowed in cases other than––

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(i) zero rated supplies made without payment of tax; 

(ii) where the credit has accumulated on account of rate of tax on inputs being higher than the rate  of tax on output supplies (other than nil rated or fully exempt supplies), except supplies of goods or  services or both as may be notified by the Government on the recommendations of the Council: 

Provided further that no refund of unutilised input tax credit shall be allowed in cases where the  goods exported out of India are subjected to export duty: 

Provided also that no refund of input tax credit shall be allowed, if the supplier of goods or services or  both avails of drawback in respect of central tax or claims refund of the integrated tax paid on such  supplies. 

(4) The application shall be accompanied by— 

(a) such documentary evidence as may be prescribed to establish that a refund is due to the  applicant; and 

(b) such documentary or other evidence (including the documents referred to in section 33) as the  applicant may furnish to establish that the amount of tax and interest, if any, paid on such tax or any  other amount paid in relation to which such refund is claimed was collected from, or paid by, him and  the incidence of such tax and interest had not been passed on to any other person: 

Provided that where the amount claimed as refund is less than two lakh rupees, it shall not be  necessary for the applicant to furnish any documentary and other evidences but he may file a declaration,  based on the documentary or other evidences available with him, certifying that the incidence of such tax  and interest had not been passed on to any other person. 

(5) If, on receipt of any such application, the proper officer is satisfied that the whole or part of the  amount claimed as refund is refundable, he may make an order accordingly and the amount so determined  shall be credited to the Fund referred to in section 57. 

(6) Notwithstanding anything contained in sub-section (5), the proper officer may, in the case of any  claim for refund on account of zero-rated supply of goods or services or both made by registered persons,  other than such category of registered persons as may be notified by the Government on the  recommendations of the Council, refund on a provisional basis, ninety per cent. of the total amount so  claimed, excluding the amount of input tax credit provisionally accepted, in such manner and subject to  such conditions, limitations and safeguards as may be prescribed and thereafter make an order under  sub-section (5) for final settlement of the refund claim after due verification of documents furnished by  the applicant. 

(7) The proper officer shall issue the order under sub-section (5) within sixty days from the date of  receipt of application complete in all respects. 

(8) Notwithstanding anything contained in sub-section (5), the refundable amount shall, instead of  being credited to the Fund, be paid to the applicant, if such amount is relatable to— 

(a) refund of tax paid on 1[export] of goods or services or both or on inputs or input services used  in making such 1[exports]; 

(b) refund of unutilised input tax credit under sub-section (3); 

(c) refund of tax paid on a supply which is not provided, either wholly or partially, and for which  invoice has not been issued, or where a refund voucher has been issued; 

(d) refund of tax in pursuance of section 77; 

(e) the tax and interest, if any, or any other amount paid by the applicant, if he had not passed on  the incidence of such tax and interest to any other person; or 

(f) the tax or interest borne by such other class of applicants as the Government may, on the  recommendations of the Council, by notification, specify. 

  

  1. Subs. by Act 31 of 2018, s. 23 for ―zero-rated supplies‖ (w.e.f. 1-2-2019).

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(9) Notwithstanding anything to the contrary contained in any judgment, decree, order or direction of  the Appellate Tribunal or any court or in any other provisions of this Act or the rules made thereunder or  in any other law for the time being in force, no refund shall be made except in accordance with the  provisions of sub-section (8). 

(10) Where any refund is due under sub-section (3) to a registered person who has defaulted in  furnishing any return or who is required to pay any tax, interest or penalty, which has not been stayed by  any court, Tribunal or Appellate Authority by the specified date, the proper officer may— 

(a) withhold payment of refund due until the said person has furnished the return or paid the tax,  interest or penalty, as the case may be; 

(b) deduct from the refund due, any tax, interest, penalty, fee or any other amount which the  taxable person is liable to pay but which remains unpaid under this Act or under the existing law

Explanation.––For the purposes of this sub-section, the expression ―specified date‖ shall mean the  last date for filing an appeal under this Act. 

(11) Where an order giving rise to a refund is the subject matter of an appeal or further proceedings or  where any other proceedings under this Act is pending and the Commissioner is of the opinion that grant of  such refund is likely to adversely affect the revenue in the said appeal or other proceedings on account of  malfeasance or fraud committed, he may, after giving the taxable person an opportunity of being heard,  withhold the refund till such time as he may determine. 

(12) Where a refund is withheld under sub-section (11), the taxable person shall, notwithstanding  anything contained in section 56, be entitled to interest at such rate not exceeding six per cent. as may be  notified on the recommendations of the Council, if as a result of the appeal or further proceedings he  becomes entitled to refund. 

(13) Notwithstanding anything to the contrary contained in this section, the amount of advance tax  deposited by a casual taxable person or a non-resident taxable person under sub-section (2) of section 27,  shall not be refunded unless such person has, in respect of the entire period for which the certificate of  registration granted to him had remained in force, furnished all the returns required under section 39. 

(14) Notwithstanding anything contained in this section, no refund under sub-section (5) or sub-section (6)  shall be paid to an applicant, if the amount is less than one thousand rupees. 

Explanation.—For the purposes of this section,–– 

(1) ―refund‖ includes refund of tax paid on zero-rated supplies of goods or services or both or on  inputs or input services used in making such zero-rated supplies, or refund of tax on the supply of  goods regarded as deemed exports, or refund of unutilised input tax credit as provided under sub section (3). 

(2) ―relevant date‖ means— 

(a) in the case of goods exported out of India where a refund of tax paid is available in  respect of goods themselves or, as the case may be, the inputs or input services used in such  goods,–– 

(i) if the goods are exported by sea or air, the date on which the ship or the aircraft in  which such goods are loaded, leaves India; or 

(ii) if the goods are exported by land, the date on which such goods pass the frontier; or 

(iii) if the goods are exported by post, the date of despatch of goods by the Post Office  concerned to a place outside India; 

(b) in the case of supply of goods regarded as deemed exports where a refund of tax paid is  available in respect of the goods, the date on which the return relating to such deemed exports is  furnished;

49 

(c) in the case of services exported out of India where a refund of tax paid is available in  respect of services themselves or, as the case may be, the inputs or input services used in such  services, the date of–– 

(i) receipt of payment in convertible foreign exchange, 1[or in Indian rupees wherever  permitted by the Reserve Bank of India] where the supply of services had been completed  prior to the receipt of such payment; or 

(ii) issue of invoice, where payment for the services had been received in advance prior to  the date of issue of the invoice; 

(d) in case where the tax becomes refundable as a consequence of judgment, decree, order or  direction of the Appellate Authority, Appellate Tribunal or any court, the date of communication of such  judgment, decree, order or direction; 

2[(e) in the case of refund of unutilised input tax credit under clause (ii) of the first proviso  to sub-section (3), the due date for furnishing of return under section 39 for the period in which  such claim for refund arises;] 

(f) in the case where tax is paid provisionally under this Act or the rules made thereunder, the date  of adjustment of tax after the final assessment thereof; 

(g) in the case of a person, other than the supplier, the date of receipt of goods or services or  both by such person; and 

(h) in any other case, the date of payment of tax. 

  1. Refund in certain cases.––The Government may, on the recommendations of the Council, by  notification, specify any specialised agency of the United Nations Organisation or any Multilateral Financial  Institution and Organisation notified under the United Nations (Privileges and Immunities) Act, 1947 (46 of  1947), Consulate or Embassy of foreign countries and any other person or class of persons as may be specified in  this behalf, who shall, subject to such conditions and restrictions as may be prescribed, be entitled to claim a  refund of taxes paid on the notified supplies of goods or services or both received by them. 
  2. Interest on delayed refunds.––If any tax ordered to be refunded under sub-section (5) of section 54  to any applicant is not refunded within sixty days from the date of receipt of application under sub-section (1)  of that section, interest at such rate not exceeding six per cent. as may be specified in the notification issued  by the Government on the recommendations of the Council shall be payable in respect of such refund from  the date immediately after the expiry of sixty days from the date of receipt of application under the said sub 

section till the date of refund of such tax: 

Provided that where any claim of refund arises from an order passed by an adjudicating authority or  Appellate Authority or Appellate Tribunal or court which has attained finality and the same is not refunded  within sixty days from the date of receipt of application filed consequent to such order, interest at such rate not  exceeding nine per cent. as may be notified by the Government on the recommendations of the Council shall be  payable in respect of such refund from the date immediately after the expiry of sixty days from the date of  receipt of application till the date of refund. 

Explanation.––For the purposes of this section, where any order of refund is made by an Appellate  Authority, Appellate Tribunal or any court against an order of the proper officer under sub-section (5) of  section 54, the order passed by the Appellate Authority, Appellate Tribunal or by the court shall be  deemed to be an order passed under the said sub-section (5). 

  1. Consumer Welfare Fund.—The Government shall constitute a Fund, to be called the Consumer  Welfare Fund and there shall be credited to the Fund,— 

(a) the amount referred to in sub-section (5) of section 54; 

(b) any income from investment of the amount credited to the Fund; and 

  

  1. Ins. by Act 31 of 2018, s. 23 (w.e.f. 1-2-2019).  
  2. Subs. by Act 31 of 2018, s. 23 (w.e.f.. 1-2-2019).

50 

(c) such other monies received by it, 

in such manner as may be prescribed. 

  1. Utilisation of Fund.—(1) All sums credited to the Fund shall be utilised by the Government for  the welfare of the consumers in such manner as may be prescribed. 

(2) The Government or the authority specified by it shall maintain proper and separate account and  other relevant records in relation to the Fund and prepare an annual statement of accounts in such form as  may be prescribed in consultation with the Comptroller and Auditor-General of India. 

CHAPTER XII  

ASSESSMENT 

  1. Self-assessment.—Every registered person shall self-assess the taxes payable under this Act and  furnish a return for each tax period as specified under section 39. 
  2. Provisional assessment.—(1) Subject to the provisions of sub-section (2), where the taxable person  is unable to determine the value of goods or services or both or determine the rate of tax applicable thereto,  he may request the proper officer in writing giving reasons for payment of tax on a provisional basis and the  proper officer shall pass an order, within a period not later than ninety days from the date of receipt of such  request, allowing payment of tax on provisional basis at such rate or on such value as may be specified by  him. 

(2) The payment of tax on provisional basis may be allowed, if the taxable person executes a bond in such  form as may be prescribed, and with such surety or security as the proper officer may deem fit, binding the  taxable person for payment of the difference between the amount of tax as may be finally assessed and the  amount of tax provisionally assessed. 

(3) The proper officer shall, within a period not exceeding six months from the date of the  communication of the order issued under sub-section (1), pass the final assessment order after taking into  account such information as may be required for finalizing the assessment: 

Provided that the period specified in this sub-section may, on sufficient cause being shown and for  reasons to be recorded in writing, be extended by the Joint Commissioner or Additional Commissioner  for a further period not exceeding six months and by the Commissioner for such further period not  exceeding four years. 

(4) The registered person shall be liable to pay interest on any tax payable on the supply of goods or  services or both under provisional assessment but not paid on the due date specified under sub-section (7) of  section 39 or the rules made thereunder, at the rate specified under sub-section (1) of section 50, from the first  day after the due date of payment of tax in respect of the said supply of goods or services or both till the date of  actual payment, whether such amount is paid before or after the issuance of order for final assessment. 

(5) Where the registered person is entitled to a refund consequent to the order of final assessment  under sub-section (3), subject to the provisions of sub-section (8) of section 54, interest shall be paid on  such refund as provided in section 56. 

  1. Scrutiny of returns.––(1) The proper officer may scrutinize the return and related particulars furnished  by the registered person to verify the correctness of the return and inform him of the discrepancies noticed, if  any, in such manner as may be prescribed and seek his explanation thereto. 

(2) In case the explanation is found acceptable, the registered person shall be informed accordingly  and no further action shall be taken in this regard. 

(3) In case no satisfactory explanation is furnished within a period of thirty days of being informed by  the proper officer or such further period as may be permitted by him or where the registered person, after  accepting the discrepancies, fails to take the corrective measure in his return for the month in which the  discrepancy is accepted, the proper officer may initiate appropriate action including those under section 65  or section 66 or section 67, or proceed to determine the tax and other dues under section 73 or section 74.

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  1. Assessment of non-filers of returns.––(1) Notwithstanding anything to the contrary contained in  section 73 or section 74, where a registered person fails to furnish the return under section 39 or section 45,  even after the service of a notice under section 46, the proper officer may proceed to assess the tax liability of  the said person to the best of his judgment taking into account all the relevant material which is available or  which he has gathered and issue an assessment order within a period of five years from the date specified  under section 44 for furnishing of the annual return for the financial year to which the tax not paid relates. 

(2) Where the registered person furnishes a valid return within thirty days of the service of the  assessment order under sub-section (1), the said assessment order shall be deemed to have been  withdrawn but the liability for payment of interest under sub-section (1) of section 50 or for payment of  late fee under section 47 shall continue. 

  1. Assessment of unregistered persons.––Notwithstanding anything to the contrary contained in  section 73 or section 74, where a taxable person fails to obtain registration even though liable to do so or  whose registration has been cancelled under sub-section (2) of section 29 but who was liable to pay tax,  the proper officer may proceed to assess the tax liability of such taxable person to the best of his judgment  for the relevant tax periods and issue an assessment order within a period of five years from the date  specified under section 44 for furnishing of the annual return for the financial year to which the tax not  paid relates: 

Provided that no such assessment order shall be passed without giving the person an opportunity of  being heard. 

  1. Summary assessment in certain special cases.––(1) The proper officer may, on any evidence  showing a tax liability of a person coming to his notice, with the previous permission of Additional  Commissioner or Joint Commissioner, proceed to assess the tax liability of such person to protect the  interest of revenue and issue an assessment order, if he has sufficient grounds to believe that any delay in  doing so may adversely affect the interest of revenue: 

Provided that where the taxable person to whom the liability pertains is not ascertainable and such  liability pertains to supply of goods, the person in charge of such goods shall be deemed to be the taxable  person liable to be assessed and liable to pay tax and any other amount due under this section. 

(2) On an application made by the taxable person within thirty days from the date of receipt of order  passed under sub-section (1) or on his own motion, if the Additional Commissioner or Joint  Commissioner considers that such order is erroneous, he may withdraw such order and follow the  procedure laid down in section 73 or section 74. 

CHAPTER XIII  

AUDIT 

  1. Audit by tax authorities.––(1) The Commissioner or any officer authorised by him, by way of a  general or a specific order, may undertake audit of any registered person for such period, at such  frequency and in such manner as may be prescribed. 

(2) The officers referred to in sub-section (1) may conduct audit at the place of business of the  registered person or in their office. 

(3) The registered person shall be informed by way of a notice not less than fifteen working days  prior to the conduct of audit in such manner as may be prescribed. 

(4) The audit under sub-section (1) shall be completed within a period of three months from the date  of commencement of the audit: 

Provided that where the Commissioner is satisfied that audit in respect of such registered person  cannot be completed within three months, he may, for the reasons to be recorded in writing, extend the  period by a further period not exceeding six months. 

Explanation.––For the purposes of this sub-section, the expression ―commencement of audit‖ shall  mean the date on which the records and other documents, called for by the tax authorities, are made  available by the registered person or the actual institution of audit at the place of business, whichever is  later.

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(5) During the course of audit, the authorised officer may require the registered person,— 

(i) to afford him the necessary facility to verify the books of account or other documents as he  may require; 

(ii) to furnish such information as he may require and render assistance for timely completion of  the audit. 

(6) On conclusion of audit, the proper officer shall, within thirty days, inform the registered person,  whose records are audited, about the findings, his rights and obligations and the reasons for such findings. 

(7) Where the audit conducted under sub-section (1) results in detection of tax not paid or short paid  or erroneously refunded, or input tax credit wrongly availed or utilised, the proper officer may initiate  action under section 73 or section 74. 

  1. Special audit.––(1) If at any stage of scrutiny, inquiry, investigation or any other proceedings before him, any officer not below the rank of Assistant Commissioner, having regard to the nature and complexity of  the case and the interest of revenue, is of the opinion that the value has not been correctly declared or the credit  availed is not within the normal limits, he may, with the prior approval of the Commissioner, direct such  registered person by a communication in writing to get his records including books of account examined and  audited by a chartered accountant or a cost accountant as may be nominated by the Commissioner. 

(2) The chartered accountant or cost accountant so nominated shall, within the period of ninety days,  submit a report of such audit duly signed and certified by him to the said Assistant Commissioner  mentioning therein such other particulars as may be specified: 

Provided that the Assistant Commissioner may, on an application made to him in this behalf by the  registered person or the chartered accountant or cost accountant or for any material and sufficient reason,  extend the said period by a further period of ninety days. 

(3) The provisions of sub-section (1) shall have effect notwithstanding that the accounts of the  registered person have been audited under any other provisions of this Act or any other law for the time  being in force. 

(4) The registered person shall be given an opportunity of being heard in respect of any material  gathered on the basis of special audit under sub-section (1) which is proposed to be used in any proceedings  against him under this Act or the rules made thereunder. 

(5) The expenses of the examination and audit of records under sub-section (1), including the  remuneration of such chartered accountant or cost accountant, shall be determined and paid by the  Commissioner and such determination shall be final. 

(6) Where the special audit conducted under sub-section (1) results in detection of tax not paid or  short paid or erroneously refunded, or input tax credit wrongly availed or utilised, the proper officer may  initiate action under section 73 or section 74. 

CHAPTER XIV 

INSPECTION, SEARCH, SEIZURE AND ARREST 

  1. Power of inspection, search and seizure.––(1) Where the proper officer, not below the rank of  Joint Commissioner, has reasons to believe that–– 

(a) a taxable person has suppressed any transaction relating to supply of goods or services or both or  the stock of goods in hand, or has claimed input tax credit in excess of his entitlement under this Act or  has indulged in contravention of any of the provisions of this Act or the rules made thereunder to evade  tax under this Act; or 

(b) any person engaged in the business of transporting goods or an owner or operator of a  warehouse or a godown or any other place is keeping goods which have escaped payment of tax or  has kept his accounts or goods in such a manner as is likely to cause evasion of tax payable under this  Act,

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he may authorise in writing any other officer of central tax to inspect any places of business of the taxable  person or the persons engaged in the business of transporting goods or the owner or the operator of  warehouse or godown or any other place. 

(2) Where the proper officer, not below the rank of Joint Commissioner, either pursuant to an inspection  carried out under sub-section (1) or otherwise, has reasons to believe that any goods liable to confiscation or  any documents or books or things, which in his opinion shall be useful for or relevant to any proceedings under  this Act, are secreted in any place, he may authorise in writing any other officer of central tax to search and  seize or may himself search and seize such goods, documents or books or things: 

Provided that where it is not practicable to seize any such goods, the proper officer, or any officer  authorised by him, may serve on the owner or the custodian of the goods an order that he shall not  remove, part with, or otherwise deal with the goods except with the previous permission of such officer: 

Provided further that the documents or books or things so seized shall be retained by such officer only  for so long as may be necessary for their examination and for any inquiry or proceedings under this Act. 

(3) The documents, books or things referred to in sub-section (2) or any other documents, books or  things produced by a taxable person or any other person, which have not been relied upon for the issue of  notice under this Act or the rules made thereunder, shall be returned to such person within a period not  exceeding thirty days of the issue of the said notice. 

(4) The officer authorised under sub-section (2) shall have the power to seal or break open the door of any  premises or to break open any almirah, electronic devices, box, receptacle in which any goods, accounts,  registers or documents of the person are suspected to be concealed, where access to such premises, almirah,  electronic devices, box or receptacle is denied. 

(5) The person from whose custody any documents are seized under sub-section (2) shall be entitled to  make copies thereof or take extracts therefrom in the presence of an authorised officer at such place and  time as such officer may indicate in this behalf except where making such copies or taking such extracts  may, in the opinion of the proper officer, prejudicially affect the investigation. 

(6) The goods so seized under sub-section (2) shall be released, on a provisional basis, upon  execution of a bond and furnishing of a security, in such manner and of such quantum, respectively, as  may be prescribed or on payment of applicable tax, interest and penalty payable, as the case may be. 

(7) Where any goods are seized under sub-section (2) and no notice in respect thereof is given within  six months of the seizure of the goods, the goods shall be returned to the person from whose possession  they were seized: 

Provided that the period of six months may, on sufficient cause being shown, be extended by the  proper officer for a further period not exceeding six months. 

(8) The Government may, having regard to the perishable or hazardous nature of any goods,  depreciation in the value of the goods with the passage of time, constraints of storage space for the goods  or any other relevant considerations, by notification, specify the goods or class of goods which shall, as  soon as may be after its seizure under sub-section (2), be disposed of by the proper officer in such manner  as may be prescribed. 

(9) Where any goods, being goods specified under sub-section (8), have been seized by a proper  officer, or any officer authorised by him under sub-section (2), he shall prepare an inventory of such  goods in such manner as may be prescribed. 

(10) The provisions of the Code of Criminal Procedure, 1973 (2 of 1974), relating to search and seizure,  shall, so far as may be, apply to search and seizure under this section subject to the modification that sub section (5) of section 165 of the said Code shall have effect as if for the word ―Magistrate‖, wherever it  occurs, the word ―Commissioner‖ were substituted. 

(11) Where the proper officer has reasons to believe that any person has evaded or is attempting to evade  the payment of any tax, he may, for reasons to be recorded in writing, seize the accounts, registers or  documents of such person produced before him and shall grant a receipt for the same, and shall retain the same 

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for so long as may be necessary in connection with any proceedings under this Act or the rules made  thereunder for prosecution. 

(12) The Commissioner or an officer authorised by him may cause purchase of any goods or services  or both by any person authorised by him from the business premises of any taxable person, to check the  issue of tax invoices or bills of supply by such taxable person, and on return of goods so purchased by  such officer, such taxable person or any person in charge of the business premises shall refund the amount  so paid towards the goods after cancelling any tax invoice or bill of supply issued earlier. 

  1. Inspection of goods in movement.––(1) The Government may require the person in charge of a  conveyance carrying any consignment of goods of value exceeding such amount as may be specified to  carry with him such documents and such devices as may be prescribed. 

(2) The details of documents required to be carried under sub-section (1) shall be validated in such  manner as may be prescribed. 

(3) Where any conveyance referred to in sub-section (1) is intercepted by the proper officer at any  place, he may require the person in charge of the said conveyance to produce the documents prescribed  under the said sub-section and devices for verification, and the said person shall be liable to produce the  documents and devices and also allow the inspection of goods. 

  1. Power to arrest.––(1) Where the Commissioner has reasons to believe that a person has  committed any offence specified in clause (a) or clause (b) or clause (c) or clause (d) of sub-section (1) of  section 132 which is punishable under clause (i) or (ii) of sub-section (1), or sub-section (2) of the said  section, he may, by order, authorise any officer of central tax to arrest such person. 

(2) Where a person is arrested under sub-section (1) for an offence specified under sub-section (5) of  section 132, the officer authorised to arrest the person shall inform such person of the grounds of arrest and  produce him before a Magistrate within twenty-four hours. 

(3) Subject to the provisions of the Code of Criminal Procedure, 1973(2 of 1974),–– 

(a) where a person is arrested under sub-section (1) for any offence specified under  sub-section (4) of section 132, he shall be admitted to bail or in default of bail, forwarded to the  custody of the Magistrate; 

(b) in the case of a non-cognizable and bailable offence, the Deputy Commissioner or the Assistant  Commissioner shall, for the purpose of releasing an arrested person on bail or otherwise, have the same  powers and be subject to the same provisions as an officer-in-charge of a police station. 

  1. Power to summon persons to give evidence and produce documents.––(1) The proper officer  under this Act shall have power to summon any person whose attendance he considers necessary either to  give evidence or to produce a document or any other thing in any inquiry in the same manner, as provided  in the case of a civil court under the provisions of the Code of Civil Procedure, 1908 (5 of 1908). 

(2) Every such inquiry referred to in sub-section (1) shall be deemed to be a ―judicial proceedings‖  within the meaning of section 193 and section 228 of the Indian Penal Code (45 of 1860). 

  1. Access to business premises.––(1) Any officer under this Act, authorised by the proper officer not  below the rank of Joint Commissioner, shall have access to any place of business of a registered person to  inspect books of account, documents, computers, computer programs, computer software whether installed in  a computer or otherwise and such other things as he may require and which may be available at such place,  for the purposes of carrying out any audit, scrutiny, verification and checks as may be necessary to safeguard  the interest of revenue. 

(2) Every person in charge of place referred to in sub-section (1) shall, on demand, make available to  the officer authorised under sub-section (1) or the audit party deputed by the proper officer or a cost  accountant or chartered accountant nominated under section 66— 

(i) such records as prepared or maintained by the registered person and declared to the proper  officer in such manner as may be prescribed;

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(ii) trial balance or its equivalent; 

(iii) statements of annual financial accounts, duly audited, wherever required; 

(iv) cost audit report, if any, under section 148 of the Companies Act, 2013(18 of 2013); (v) the income-tax audit report, if any, under section 44AB of the Income-tax Act, 1961  (43 of 1961); and 

(vi) any other relevant record, 

for the scrutiny by the officer or audit party or the chartered accountant or cost accountant within a period  not exceeding fifteen working days from the day when such demand is made, or such further period as  may be allowed by the said officer or the audit party or the chartered accountant or cost accountant. 

  1. Officers to assist proper officers.––(1) All officers of Police, Railways, Customs, and those  officers engaged in the collection of land revenue, including village officers, officers of State tax and  officers of Union territory tax shall assist the proper officers in the implementation of this Act. 

(2) The Government may, by notification, empower and require any other class of officers to assist  the proper officers in the implementation of this Act when called upon to do so by the Commissioner. 

CHAPTER XV 

DEMANDS AND RECOVERY 

  1. Determination of tax not paid or short paid or erroneously refunded or input tax credit  wrongly availed or utilised for any reason other than fraud or any wilful-misstatement or suppression  of facts.––(1) Where it appears to the proper officer that any tax has not been paid or short paid or  erroneously refunded, or where input tax credit has been wrongly availed or utilised for any reason, other  than the reason of fraud or any wilful-misstatement or suppression of facts to evade tax, he shall serve notice  on the person chargeable with tax which has not been so paid or which has been so short paid or to whom  the refund has erroneously been made, or who has wrongly availed or utilised input tax credit, requiring him  to show cause as to why he should not pay the amount specified in the notice along with interest payable  thereon under section 50 and a penalty leviable under the provisions of this Act or the rules made  thereunder. 

(2) The proper officer shall issue the notice under sub-section (1) at least three months prior to the  time limit specified in sub-section (10) for issuance of order. 

(3) Where a notice has been issued for any period under sub-section (1), the proper officer may serve  a statement, containing the details of tax not paid or short paid or erroneously refunded or input tax credit  wrongly availed or utilised for such periods other than those covered under sub-section (1), on the person  chargeable with tax. 

(4) The service of such statement shall be deemed to be service of notice on such person under  sub-section (1), subject to the condition that the grounds relied upon for such tax periods other than those  covered under sub-section (1) are the same as are mentioned in the earlier notice. 

(5) The person chargeable with tax may, before service of notice under sub-section (1) or, as the case  may be, the statement under sub-section (3), pay the amount of tax along with interest payable thereon  under section 50 on the basis of his own ascertainment of such tax or the tax as ascertained by the proper  officer and inform the proper officer in writing of such payment. 

(6) The proper officer, on receipt of such information, shall not serve any notice under sub-section (1)  or, as the case may be, the statement under sub-section (3), in respect of the tax so paid or any penalty  payable under the provisions of this Act or the rules made thereunder. 

(7) Where the proper officer is of the opinion that the amount paid under sub-section (5) falls short of  the amount actually payable, he shall proceed to issue the notice as provided for in sub-section (1) in  respect of such amount which falls short of the amount actually payable. 

(8) Where any person chargeable with tax under sub-section (1) or sub-section (3) pays the said tax  along with interest payable under section 50 within thirty days of issue of show cause notice, no penalty  shall be payable and all proceedings in respect of the said notice shall be deemed to be concluded.

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(9) The proper officer shall, after considering the representation, if any, made by person chargeable  with tax, determine the amount of tax, interest and a penalty equivalent to ten per cent. of tax or ten  thousand rupees, whichever is higher, due from such person and issue an order. 

(10) The proper officer shall issue the order under sub-section (9) within three years from the due date  for furnishing of annual return for the financial year to which the tax not paid or short paid or input tax  credit wrongly availed or utilised relates to or within three years from the date of erroneous refund. 

(11) Notwithstanding anything contained in sub-section (6) or sub-section (8), penalty under  sub-section (9) shall be payable where any amount of self-assessed tax or any amount collected as tax has  not been paid within a period of thirty days from the due date of payment of such tax. 

  1. Determination of tax not paid or short paid or erroneously refunded or input tax credit  wrongly availed or utilised by reason of fraud or any wilful-misstatement or suppression of facts.––(1)  Where it appears to the proper officer that any tax has not been paid or short paid or erroneously refunded or  where input tax credit has been wrongly availed or utilised by reason of fraud, or any wilful-misstatement or  suppression of facts to evade tax, he shall serve notice on the person chargeable with tax which has not been  so paid or which has been so short paid or to whom the refund has erroneously been made, or who has  wrongly availed or utilised input tax credit, requiring him to show cause as to why he should not pay the  amount specified in the notice along with interest payable thereon under section 50 and a penalty equivalent  to the tax specified in the notice. 

(2) The proper officer shall issue the notice under sub-section (1) at least six months prior to the time  limit specified in sub-section (10) for issuance of order. 

(3) Where a notice has been issued for any period under sub-section (1), the proper officer may serve  a statement, containing the details of tax not paid or short paid or erroneously refunded or input tax credit  wrongly availed or utilised for such periods other than those covered under sub-section (1), on the person  chargeable with tax. 

(4) The service of statement under sub-section (3) shall be deemed to be service of notice under  sub-section (1) of section 73, subject to the condition that the grounds relied upon in the said statement,  except the ground of fraud, or any wilful-misstatement or suppression of facts to evade tax, for periods  other than those covered under sub-section (1) are the same as are mentioned in the earlier notice. 

(5) The person chargeable with tax may, before service of notice under sub-section (1), pay the  amount of tax along with interest payable under section 50 and a penalty equivalent to fifteen per cent. of  such tax on the basis of his own ascertainment of such tax or the tax as ascertained by the proper officer  and inform the proper officer in writing of such payment. 

(6) The proper officer, on receipt of such information, shall not serve any notice under  sub-section (1), in respect of the tax so paid or any penalty payable under the provisions of this Act or the  rules made thereunder. 

(7) Where the proper officer is of the opinion that the amount paid under sub-section (5) falls short of  the amount actually payable, he shall proceed to issue the notice as provided for in sub-section (1) in  respect of such amount which falls short of the amount actually payable. 

(8) Where any person chargeable with tax under sub-section (1) pays the said tax along with interest  payable under section 50 and a penalty equivalent to twenty-five per cent. of such tax within thirty days  of issue of the notice, all proceedings in respect of the said notice shall be deemed to be concluded. 

(9) The proper officer shall, after considering the representation, if any, made by the person  chargeable with tax, determine the amount of tax, interest and penalty due from such person and issue an  order. 

(10) The proper officer shall issue the order under sub-section (9) within a period of five years from  the due date for furnishing of annual return for the financial year to which the tax not paid or short paid or  input tax credit wrongly availed or utilised relates to or within five years from the date of erroneous  refund. 

(11) Where any person served with an order issued under sub-section (9) pays the tax along with  interest payable thereon under section 50 and a penalty equivalent to fifty per cent. of such tax within 

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thirty days of communication of the order, all proceedings in respect of the said notice shall be deemed to  be concluded. 

Explanation 1.—For the purposes of section 73 and this section,— 

(i) the expression ―all proceedings in respect of the said notice‖ shall not include proceedings  under section 132; 

(ii) where the notice under the same proceedings is issued to the main person liable to pay tax and  some other persons, and such proceedings against the main person have been concluded under section  73 or section 74, the proceedings against all the persons liable to pay penalty under sections 122, 125,  129 and 130 are deemed to be concluded. 

Explanation 2.––For the purposes of this Act, the expression ―suppression‖ shall mean non-declaration  of facts or information which a taxable person is required to declare in the return, statement, report or any  other document furnished under this Act or the rules made thereunder, or failure to furnish any information  on being asked for, in writing, by the proper officer. 

  1. 75. General provisions relating to determination of tax.—(1) Where the service of notice or  issuance of order is stayed by an order of a court or Appellate Tribunal, the period of such stay shall be  excluded in computing the period specified in sub-sections (2) and (10) of section 73 or sub-sections (2)  and (10) of section 74, as the case may be. 

(2) Where any Appellate Authority or Appellate Tribunal or court concludes that the notice issued  under sub-section (1) of section 74 is not sustainable for the reason that the charges of fraud or any  willful-misstatement or suppression of facts to evade tax has not been established against the person to  whom the notice was issued, the proper officer shall determine the tax payable by such person, deeming  as if the notice were issued under sub-section (1) of section 73. 

(3) Where any order is required to be issued in pursuance of the direction of the Appellate Authority  or Appellate Tribunal or a court, such order shall be issued within two years from the date of  communication of the said direction. 

(4) An opportunity of hearing shall be granted where a request is received in writing from the person  chargeable with tax or penalty, or where any adverse decision is contemplated against such person. 

(5) The proper officer shall, if sufficient cause is shown by the person chargeable with tax, grant time  to the said person and adjourn the hearing for reasons to be recorded in writing: 

Provided that no such adjournment shall be granted for more than three times to a person during the  proceedings. 

(6) The proper officer, in his order, shall set out the relevant facts and the basis of his decision. 

(7) The amount of tax, interest and penalty demanded in the order shall not be in excess of the amount  specified in the notice and no demand shall be confirmed on the grounds other than the grounds specified  in the notice. 

(8) Where the Appellate Authority or Appellate Tribunal or court modifies the amount of tax  determined by the proper officer, the amount of interest and penalty shall stand modified accordingly, taking into account the amount of tax so modified. 

(9) The interest on the tax short paid or not paid shall be payable whether or not specified in the order  determining the tax liability.

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(10) The adjudication proceedings shall be deemed to be concluded, if the order is not issued within  three years as provided for in sub-section (10) of section 73 or within five years as provided for in  sub-section (10) of section 74. 

(11) An issue on which the Appellate Authority or the Appellate Tribunal or the High Court has given  its decision which is prejudicial to the interest of revenue in some other proceedings and an appeal to the  Appellate Tribunal or the High Court or the Supreme Court against such decision of the Appellate Authority  or the Appellate Tribunal or the High Court is pending, the period spent between the date of the decision of  the Appellate Authority and that of the Appellate Tribunal or the date of decision of the Appellate  Tribunal and that of the High Court or the date of the decision of the High Court and that of the Supreme  Court shall be excluded in computing the period referred to in sub-section (10) of section 73 or  sub-section (10) of section 74 where proceedings are initiated by way of issue of a show cause notice  under the said sections. 

(12) Notwithstanding anything contained in section 73 or section 74, where any amount of self-assessed  tax in accordance with a return furnished under section 39 remains unpaid, either wholly or partly, or any  amount of interest payable on such tax remains unpaid, the same shall be recovered under the provisions of  section 79. 

(13) Where any penalty is imposed under section 73 or section 74, no penalty for the same act or  omission shall be imposed on the same person under any other provision of this Act. 

  1. Tax collected but not paid to Government.—(1) Notwithstanding anything to the contrary  contained in any order or direction of any Appellate Authority or Appellate Tribunal or court or in any  other provisions of this Act or the rules made thereunder or any other law for the time being in force,  every person who has collected from any other person any amount as representing the tax under this Act,  and has not paid the said amount to the Government, shall forthwith pay the said amount to the  Government, irrespective of whether the supplies in respect of which such amount was collected are  taxable or not. 

(2) Where any amount is required to be paid to the Government under sub-section (1), and which has  not been so paid, the proper officer may serve on the person liable to pay such amount a notice requiring  him to show cause as to why the said amount as specified in the notice, should not be paid by him to the  Government and why a penalty equivalent to the amount specified in the notice should not be imposed on  him under the provisions of this Act. 

(3) The proper officer shall, after considering the representation, if any, made by the person on whom  the notice is served under sub-section (2), determine the amount due from such person and thereupon  such person shall pay the amount so determined. 

(4) The person referred to in sub-section (1) shall in addition to paying the amount referred to in  sub-section (1) or sub-section (3) also be liable to pay interest thereon at the rate specified under section  50 from the date such amount was collected by him to the date such amount is paid by him to the  Government. 

(5) An opportunity of hearing shall be granted where a request is received in writing from the person  to whom the notice was issued to show cause. 

(6) The proper officer shall issue an order within one year from the date of issue of the notice. (7) Where the issuance of order is stayed by an order of the court or Appellate Tribunal, the period of  such stay shall be excluded in computing the period of one year. 

(8) The proper officer, in his order, shall set out the relevant facts and the basis of his decision. 

(9) The amount paid to the Government under sub-section (1) or sub-section (3) shall be adjusted  against the tax payable, if any, by the person in relation to the supplies referred to in sub-section (1).

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(10) Where any surplus is left after the adjustment under sub-section (9), the amount of such surplus  shall either be credited to the Fund or refunded to the person who has borne the incidence of such amount. (11) The person who has borne the incidence of the amount, may apply for the refund of the same in  accordance with the provisions of section 54. 

  1. Tax wrongfully collected and paid to Central Government or State Government.—(1) A  registered person who has paid the central tax and State tax or, as the case may be, the central tax and the  Union territory tax on a transaction considered by him to be an intra-State supply, but which is  subsequently held to be an inter-State supply, shall be refunded the amount of taxes so paid in such  manner and subject to such conditions as may be prescribed. 

(2) A registered person who has paid integrated tax on a transaction considered by him to be an  inter-State supply, but which is subsequently held to be an intra-State supply, shall not be required to pay  any interest on the amount of central tax and State tax or, as the case may be, the central tax and the  Union territory tax payable. 

  1. Initiation of recovery proceedings.—Any amount payable by a taxable person in pursuance of  an order passed under this Act shall be paid by such person within a period of three months from the date  of service of such order failing which recovery proceedings shall be initiated: 

Provided that where the proper officer considers it expedient in the interest of revenue, he may, for  reasons to be recorded in writing, require the said taxable person to make such payment within such period less  than a period of three months as may be specified by him. 

  1. Recovery of tax.—(1) Where any amount payable by a person to the Government under any of  the provisions of this Act or the rules made thereunder is not paid, the proper officer shall proceed to  recover the amount by one or more of the following modes, namely:–– 

(a) the proper officer may deduct or may require any other specified officer to deduct the amount  so payable from any money owing to such person which may be under the control of the proper  officer or such other specified officer; 

(b) the proper officer may recover or may require any other specified officer to recover the amount so  payable by detaining and selling any goods belonging to such person which are under the control of the  proper officer or such other specified officer; 

(c) (i) the proper officer may, by a notice in writing, require any other person from whom money is  due or may become due to such person or who holds or may subsequently hold money for or on account  of such person, to pay to the Government either forthwith upon the money becoming due or being held, or  within the time specified in the notice not being before the money becomes due or is held, so much of the  money as is sufficient to pay the amount due from such person or the whole of the money when it is equal  to or less than that amount; 

(ii) every person to whom the notice is issued under sub-clause (i) shall be bound to comply with  such notice, and in particular, where any such notice is issued to a post office, banking company or an  insurer, it shall not be necessary to produce any pass book, deposit receipt, policy or any other  document for the purpose of any entry, endorsement or the like being made before payment is made,  notwithstanding any rule, practice or requirement to the contrary; 

(iii) in case the person to whom a notice under sub-clause (i) has been issued, fails to make the  payment in pursuance thereof to the Government, he shall be deemed to be a defaulter in respect of  the amount specified in the notice and all the consequences of this Act or the rules made thereunder  shall follow; 

(iv) the officer issuing a notice under sub-clause (i) may, at any time, amend or revoke such  notice or extend the time for making any payment in pursuance of the notice; 

(v) any person making any payment in compliance with a notice issued under sub-clause (i) shall be  deemed to have made the payment under the authority of the person in default and such payment being 

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credited to the Government shall be deemed to constitute a good and sufficient discharge of the liability  of such person to the person in default to the extent of the amount specified in the receipt; 

(vi) any person discharging any liability to the person in default after service on him of the notice  issued under sub-clause (i) shall be personally liable to the Government to the extent of the liability  discharged or to the extent of the liability of the person in default for tax, interest and penalty, whichever is  less; 

(vii) where a person on whom a notice is served under sub-clause (i) proves to the satisfaction of  the officer issuing the notice that the money demanded or any part thereof was not due to the person  in default or that he did not hold any money for or on account of the person in default, at the time the  notice was served on him, nor is the money demanded or any part thereof, likely to become due to the  said person or be held for or on account of such person, nothing contained in this section shall be  deemed to require the person on whom the notice has been served to pay to the Government any such  money or part thereof; 

(d) the proper officer may, in accordance with the rules to be made in this behalf, distrain any  movable or immovable property belonging to or under the control of such person, and detain the same  until the amount payable is paid; and in case, any part of the said amount payable or of the cost of the  distress or keeping of the property, remains unpaid for a period of thirty days next after any such distress,  may cause the said property to be sold and with the proceeds of such sale, may satisfy the amount payable  and the costs including cost of sale remaining unpaid and shall render the surplus amount, if any, to such  person; 

(e) the proper officer may prepare a certificate signed by him specifying the amount due from  such person and send it to the Collector of the district in which such person owns any property or  resides or carries on his business or to any officer authorised by the Government and the said  Collector or the said officer, on receipt of such certificate, shall proceed to recover from such person  the amount specified thereunder as if it were an arrear of land revenue; 

(f) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), the  proper officer may file an application to the appropriate Magistrate and such Magistrate shall proceed  to recover from such person the amount specified thereunder as if it were a fine imposed by him. 

(2) Where the terms of any bond or other instrument executed under this Act or any rules or  regulations made thereunder provide that any amount due under such instrument may be recovered in the  manner laid down in sub-section (1), the amount may, without prejudice to any other mode of recovery,  be recovered in accordance with the provisions of that sub-section. 

(3) Where any amount of tax, interest or penalty is payable by a person to the Government under any  of the provisions of this Act or the rules made thereunder and which remains unpaid, the proper officer of  State tax or Union territory tax, during the course of recovery of said tax arrears, may recover the amount  from the said person as if it were an arrear of State tax or Union territory tax and credit the amount so  recovered to the account of the Government. 

(4) Where the amount recovered under sub-section (3) is less than the amount due to the Central  Government and State Government, the amount to be credited to the account of the respective  Governments shall be in proportion to the amount due to each such Government. 

1[Explanation.––For the purposes of this section, the word person shall include ―distinct persons‖ as referred to in sub-section (4) or, as the case may be, sub-section (5) of section 25.] 

  1. 80. Payment of tax and other amount in instalments.—On an application filed by a taxable person,  the Commissioner may, for reasons to be recorded in writing, extend the time for payment or allow payment of  any amount due under this Act, other than the amount due as per the liability self-assessed in any return, by  

  

  1. The explanation ins. by Act 31 of 2018, s. 24 (w.e.f. 1-2-2019).

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such person in monthly instalments not exceeding twenty four, subject to payment of interest under section 50  and subject to such conditions and limitations as may be prescribed: 

Provided that where there is default in payment of any one instalment on its due date, the whole  outstanding balance payable on such date shall become due and payable forthwith and shall, without any  further notice being served on the person, be liable for recovery. 

  1. Transfer of property to be void in certain cases.—Where a person, after any amount has  become due from him, creates a charge on or parts with the property belonging to him or in his possession  by way of sale, mortgage, exchange, or any other mode of transfer whatsoever of any of his properties in  favour of any other person with the intention of defrauding the Government revenue, such charge or  transfer shall be void as against any claim in respect of any tax or any other sum payable by the said  person: 

Provided that, such charge or transfer shall not be void if it is made for adequate consideration, in  good faith and without notice of the pendency of such proceedings under this Act or without notice of  such tax or other sum payable by the said person, or with the previous permission of the proper officer. 

  1. Tax to be first charge on property.—Notwithstanding anything to the contrary contained in any  law for the time being in force, save as otherwise provided in the Insolvency and Bankruptcy Code, 2016  (31 of 2016), any amount payable by a taxable person or any other person on account of tax, interest or  penalty which he is liable to pay to the Government shall be a first charge on the property of such taxable  person or such person. 
  2. Provisional attachment to protect revenue in certain cases.—(1) Where during the pendency of  any proceedings under section 62 or section 63 or section 64 or section 67 or section 73 or section 74, the  Commissioner is of the opinion that for the purpose of protecting the interest of the Government revenue, it  is necessary so to do, he may, by order in writing attach provisionally any property, including bank account,  belonging to the taxable person in such manner as may be prescribed. 

(2) Every such provisional attachment shall cease to have effect after the expiry of a period of one  year from the date of the order made under sub-section (1). 

  1. Continuation and validation of certain recovery proceedings.—Where any notice of demand in  respect of any tax, penalty, interest or any other amount payable under this Act, (hereafter in this section  referred to as ―Government dues‖), is served upon any taxable person or any other person and any appeal or  revision application is filed or any other proceedings is initiated in respect of such Government dues, then–– 

(a) where such Government dues are enhanced in such appeal, revision or other proceedings, the  Commissioner shall serve upon the taxable person or any other person another notice of demand in  respect of the amount by which such Government dues are enhanced and any recovery proceedings in  relation to such Government dues as are covered by the notice of demand served upon him before the  disposal of such appeal, revision or other proceedings may, without the service of any fresh notice of  demand, be continued from the stage at which such proceedings stood immediately before such  disposal; 

(b) where such Government dues are reduced in such appeal, revision or in other proceedings–– 

(i) it shall not be necessary for the Commissioner to serve upon the taxable person a fresh  notice of demand; 

(ii) the Commissioner shall give intimation of such reduction to him and to the appropriate  authority with whom recovery proceedings is pending; 

(iii) any recovery proceedings initiated on the basis of the demand served upon him prior to the  disposal of such appeal, revision or other proceedings may be continued in relation to the amount so  reduced from the stage at which such proceedings stood immediately before such disposal.

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CHAPTER XVI 

LIABILITY TO PAY IN CERTAIN CASES 

  1. Liability in case of transfer of business.—(1) Where a taxable person, liable to pay tax under  this Act, transfers his business in whole or in part, by sale, gift, lease, leave and license, hire or in any other  manner whatsoever, the taxable person and the person to whom the business is so transferred shall, jointly  and severally, be liable wholly or to the extent of such transfer, to pay the tax, interest or any penalty due  from the taxable person up to the time of such transfer, whether such tax, interest or penalty has been 

determined before such transfer, but has remained unpaid or is determined thereafter. 

(2) Where the transferee of a business referred to in sub-section (1) carries on such business either  in his own name or in some other name, he shall be liable to pay tax on the supply of goods or services or  both effected by him with effect from the date of such transfer and shall, if he is a registered person under  this Act, apply within the prescribed time for amendment of his certificate of registration. 

  1. Liability of agent and principal.—Where an agent supplies or receives any taxable goods on  behalf of his principal, such agent and his principal shall, jointly and severally, be liable to pay the tax  payable on such goods under this Act. 
  2. Liability in case of amalgamation or merger of companies.—(1) When two or more companies  are amalgamated or merged in pursuance of an order of court or of Tribunal or otherwise and the order is to  take effect from a date earlier to the date of the order and any two or more of such companies have supplied  or received any goods or services or both to or from each other during the period commencing on the date  from which the order takes effect till the date of the order, then such transactions of supply and receipt shall  be included in the turnover of supply or receipt of the respective companies and they shall be liable to pay  tax accordingly. 

(2) Notwithstanding anything contained in the said order, for the purposes of this Act, the said two or  more companies shall be treated as distinct companies for the period up to the date of the said order and  the registration certificates of the said companies shall be cancelled with effect from the date of the said  order. 

  1. Liability in case of company in liquidation.—(1) When any company is being wound up  whether under the orders of a court or Tribunal or otherwise, every person appointed as receiver of any  assets of a company (hereafter in this section referred to as the ―liquidator‖), shall, within thirty days after  his appointment, give intimation of his appointment to the Commissioner. 

(2) The Commissioner shall, after making such inquiry or calling for such information as he may deem  fit, notify the liquidator within three months from the date on which he receives intimation of the appointment  of the liquidator, the amount which in the opinion of the Commissioner would be sufficient to provide for any  tax, interest or penalty which is then, or is likely thereafter to become, payable by the company. 

(3) When any private company is wound up and any tax, interest or penalty determined under this Act on  the company for any period, whether before or in the course of or after its liquidation, cannot be recovered,  then every person who was a director of such company at any time during the period for which the tax was due  shall, jointly and severally, be liable for the payment of such tax, interest or penalty, unless he proves to the  satisfaction of the Commissioner that such non-recovery cannot be attributed to any gross neglect, misfeasance  or breach of duty on his part in relation to the affairs of the company. 

  1. Liability of directors of private company.—(1) Notwithstanding anything contained in the  Companies Act, 2013 (18 of 2013), where any tax, interest or penalty due from a private company in respect  of any supply of goods or services or both for any period cannot be recovered, then, every person who was a  director of the private company during such period shall, jointly and severally, be liable for the payment of  such tax, interest or penalty unless he proves that the non-recovery cannot be attributed to any gross  neglect, misfeasance or breach of duty on his part in relation to the affairs of the company. 

(2) Where a private company is converted into a public company and the tax, interest or penalty in  respect of any supply of goods or services or both for any period during which such company was a private 

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company cannot be recovered before such conversion, then, nothing contained in sub-section (1) shall apply  to any person who was a director of such private company in relation to any tax, interest or penalty in respect  of such supply of goods or services or both of such private company: 

Provided that nothing contained in this sub-section shall apply to any personal penalty imposed on  such director. 

  1. Liability of partners of firm to pay tax.—Notwithstanding any contract to the contrary and any  other law for the time being in force, where any firm is liable to pay any tax, interest or penalty under this  Act, the firm and each of the partners of the firm shall, jointly and severally, be liable for such payment: 

Provided that where any partner retires from the firm, he or the firm, shall intimate the date of  retirement of the said partner to the Commissioner by a notice in that behalf in writing and such partner  shall be liable to pay tax, interest or penalty due up to the date of his retirement whether determined or  not, on that date: 

Provided further that if no such intimation is given within one month from the date of retirement, the  liability of such partner under the first proviso shall continue until the date on which such intimation is  received by the Commissioner. 

  1. Liability of guardians, trustees, etc.—Where the business in respect of which any tax, interest or  penalty is payable under this Act is carried on by any guardian, trustee or agent of a minor or other  incapacitated person on behalf of and for the benefit of such minor or other incapacitated person, the tax,  interest or penalty shall be levied upon and recoverable from such guardian, trustee or agent in like manner  and to the same extent as it would be determined and recoverable from any such minor or other incapacitated  person, as if he were a major or capacitated person and as if he were conducting the business himself, and all  the provisions of this Act or the rules made thereunder shall apply accordingly. 
  2. Liability of Court of Wards, etc.—Where the estate or any portion of the estate of a taxable person  owning a business in respect of which any tax, interest or penalty is payable under this Act is under the control  of the Court of Wards, the Administrator General, the Official Trustee or any receiver or manager (including  any person, whatever be his designation, who in fact manages the business) appointed by or under any order of  a court, the tax, interest or penalty shall be levied upon and be recoverable from such Court of Wards,  Administrator General, Official Trustee, receiver or manager in like manner and to the same extent as it would  be determined and be recoverable from the taxable person as if he were conducting the business himself, and  all the provisions of this Act or the rules made thereunder shall apply accordingly. 
  3. Special provisions regarding liability to pay tax, interest or penalty in certain  cases.—(1) Save as otherwise provided in the Insolvency and Bankruptcy Code, 2016 (31 of 2016),  where a person, liable to pay tax, interest or penalty under this Act, dies, then–– 

(a) if a business carried on by the person is continued after his death by his legal liability to pay  tax, representative or any other person, such legal representative or other person, shall be  liable to pay tax, interest or penalty due from such person under this Act; and  

(b) if the business carried on by the person is discontinued, whether before or after his death, his  legal representative shall be liable to pay, out of the estate of the deceased, to the extent to which the  estate is capable of meeting the charge, the tax, interest or penalty due from such person under this  Act,  

whether such tax, interest or penalty has been determined before his death but has remained unpaid or is  determined after his death. 

(2) Save as otherwise provided in the Insolvency and Bankruptcy Code, 2016 (31 of 2016), where a  taxable person, liable to pay tax, interest or penalty under this Act, is a Hindu Undivided Family or an  association of persons and the property of the Hindu Undivided Family or the association of persons is  partitioned amongst the various members or groups of members, then, each member or group of members  shall, jointly and severally, be liable to pay the tax, interest or penalty due from the taxable person under this  Act up to the time of the partition whether such tax, penalty or interest has been determined before partition  but has remained unpaid or is determined after the partition.

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(3) Save as otherwise provided in the Insolvency and Bankruptcy Code, 2016 (31 of 2016), where a  taxable person, liable to pay tax, interest or penalty under this Act, is a firm, and the firm is dissolved, then,  every person who was a partner shall, jointly and severally, be liable to pay the tax, interest or penalty due  from the firm under this Act up to the time of dissolution whether such tax, interest or penalty has been  determined before the dissolution, but has remained unpaid or is determined after dissolution. 

(4) Save as otherwise provided in the Insolvency and Bankruptcy Code, 2016 (31 of 2016), where a  taxable person liable to pay tax, interest or penalty under this Act,–– 

(a) is the guardian of a ward on whose behalf the business is carried on by the guardian; or (b) is a trustee who carries on the business under a trust for a beneficiary, 

then, if the guardianship or trust is terminated, the ward or the beneficiary shall be liable to pay the tax,  interest or penalty due from the taxable person up to the time of the termination of the guardianship or  trust, whether such tax, interest or penalty has been determined before the termination of guardianship or  trust but has remained unpaid or is determined thereafter. 

  1. Liability in other cases.––(1) Where a taxable person is a firm or an association of persons or a  Hindu Undivided Family and such firm, association or family has discontinued business–– 

(a) the tax, interest or penalty payable under this Act by such firm, association or family up to the  date of such discontinuance may be determined as if no such discontinuance had taken place; and 

(b) every person who, at the time of such discontinuance, was a partner of such firm, or a member  of such association or family, shall, notwithstanding such discontinuance, jointly and severally, be  liable for the payment of tax and interest determined and penalty imposed and payable by such firm,  association or family, whether such tax and interest has been determined or penalty imposed prior to  or after such discontinuance and subject as aforesaid, the provisions of this Act shall, so far as may  be, apply as if every such person or partner or member were himself a taxable person. 

(2) Where a change has occurred in the constitution of a firm or an association of persons, the  partners of the firm or members of association, as it existed before and as it exists after the reconstitution,  shall, without prejudice to the provisions of section 90, jointly and severally, be liable to pay tax, interest  or penalty due from such firm or association for any period before its reconstitution. 

(3) The provisions of sub-section (1) shall, so far as may be, apply where the taxable person, being a firm  or association of persons is dissolved or where the taxable person, being a Hindu Undivided Family, has effected partition with respect to the business carried on by it and accordingly references in that sub-section to  discontinuance shall be construed as reference to dissolution or to partition. 

Explanation.––For the purposes of this Chapter,–– 

(i) a ―Limited Liability Partnership‖ formed and registered under the provisions of the Limited  Liability Partnership Act, 2008 (6 of 2009) shall also be considered as a firm; 

(ii) ―court‖ means the District Court, High Court or Supreme Court. 

CHAPTER XVII 

ADVANCE RULING 

  1. Definitions.––In this Chapter, unless the context otherwise requires,–– 

(a) ―advance ruling‖ means a decision provided by the Authority or the Appellate Authority to an  applicant on matters or on questions specified in sub-section (2) of section 97 or sub-section (1) of  section 100, in relation to the supply of goods or services or both being undertaken or proposed to be  undertaken by the applicant; 

(b) ―Appellate Authority‖ means the Appellate Authority for Advance Ruling referred to in  section 99; 

(c) ―applicant‖ means any person registered or desirous of obtaining registration under this Act;

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(d) ―application‖ means an application made to the Authority under sub-section (1) of section 97; (e) ―Authority‖ means the Authority for Advance Ruling referred to in section 96. 

  1. Authority for advance ruling.––Subject to the provisions of this Chapter, for the purposes of this  Act, the Authority for advance ruling constituted under the provisions of a State Goods and Services Tax Act or Union Territory Goods and Services Tax Act shall be deemed to be the Authority for advance ruling in  respect of that State or Union territory. 
  2. Application for advance ruling.––(1) An applicant desirous of obtaining an advance ruling  under this Chapter may make an application in such form and manner and accompanied by such fee as  may be prescribed, stating the question on which the advance ruling is sought. 

(2) The question on which the advance ruling is sought under this Act, shall be in respect of,–– (a) classification of any goods or services or both; 

(b) applicability of a notification issued under the provisions of this Act; 

(c) determination of time and value of supply of goods or services or both; 

(d) admissibility of input tax credit of tax paid or deemed to have been paid; 

(e) determination of the liability to pay tax on any goods or services or both; 

(f) whether applicant is required to be registered; 

(g) whether any particular thing done by the applicant with respect to any goods or services or  both amounts to or results in a supply of goods or services or both, within the meaning of that term. 

  1. Procedure on receipt of application.––(1) On receipt of an application, the Authority shall cause  a copy thereof to be forwarded to the concerned officer and, if necessary, call upon him to furnish the  relevant records: 

Provided that where any records have been called for by the Authority in any case, such records shall,  as soon as possible, be returned to the said concerned officer. 

(2) The Authority may, after examining the application and the records called for and after hearing  the applicant or his authorised representative and the concerned officer or his authorised representative,  by order, either admit or reject the application: 

Provided that the Authority shall not admit the application where the question raised in the  application is already pending or decided in any proceedings in the case of an applicant under any of the  provisions of this Act: 

Provided further that no application shall be rejected under this sub-section unless an opportunity of  hearing has been given to the applicant: 

Provided also that where the application is rejected, the reasons for such rejection shall be specified  in the order. 

(3) A copy of every order made under sub-section (2) shall be sent to the applicant and to the  concerned officer. 

(4) Where an application is admitted under sub-section (2), the Authority shall, after examining such  further material as may be placed before it by the applicant or obtained by the Authority and after providing  an opportunity of being heard to the applicant or his authorised representative as well as to the concerned  officer or his authorised representative, pronounce its advance ruling on the question specified in the  application. 

(5) Where the members of the Authority differ on any question on which the advance ruling is sought,  they shall state the point or points on which they differ and make a reference to the Appellate Authority  for hearing and decision on such question.

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(6) The Authority shall pronounce its advance ruling in writing within ninety days from the date of  receipt of application. 

(7) A copy of the advance ruling pronounced by the Authority duly signed by the members and  certified in such manner as may be prescribed shall be sent to the applicant, the concerned officer and the  jurisdictional officer after such pronouncement. 

  1. Appellate Authority for advance ruling.––Subject to the provisions of this Chapter, for the  purposes of this Act, the Appellate Authority for advance ruling constituted under the provisions of a State  Goods and Services Tax Act or a Union Territory Goods and Services Tax Act shall be deemed to be the  Appellate Authority in respect of that State or Union territory. 
  2. Appeal to Appellate Authority.––(1) The concerned officer, the jurisdictional officer or an  applicant aggrieved by any advance ruling pronounced under sub-section (4) of section 98, may appeal to  the Appellate Authority. 

(2) Every appeal under this section shall be filed within a period of thirty days from the date on which  the ruling sought to be appealed against is communicated to the concerned officer, the jurisdictional  officer and the applicant: 

Provided that the Appellate Authority may, if it is satisfied that the appellant was prevented by a  sufficient cause from presenting the appeal within the said period of thirty days, allow it to be presented  within a further period not exceeding thirty days. 

(3) Every appeal under this section shall be in such form, accompanied by such fee and verified in  such manner as may be prescribed. 

  1. Orders of Appellate Authority.––(1) The Appellate Authority may, after giving the parties to  the appeal or reference an opportunity of being heard, pass such order as it thinks fit, confirming or  modifying the ruling appealed against or referred to. 

(2) The order referred to in sub-section (1) shall be passed within a period of ninety days from the  date of filing of the appeal under section 100 or a reference under sub-section (5) of section 98. 

(3) Where the members of the Appellate Authority differ on any point or points referred to in appeal  or reference, it shall be deemed that no advance ruling can be issued in respect of the question under the  appeal or reference. 

(4) A copy of the advance ruling pronounced by the Appellate Authority duly signed by the Members  and certified in such manner as may be prescribed shall be sent to the applicant, the concerned officer, the  jurisdictional officer and to the Authority after such pronouncement. 

  1. Rectification of advance ruling.—The Authority or the Appellate Authority may amend any  order passed by it under section 98 or section 101, so as to rectify any error apparent on the face of the  record, if such error is noticed by the Authority or the Appellate Authority on its own accord, or is  brought to its notice by the concerned officer, the jurisdictional officer, the applicant or the appellant  within a period of six months from the date of the order: 

Provided that no rectification which has the effect of enhancing the tax liability or reducing the  amount of admissible input tax credit shall be made unless the applicant or the appellant has been given  an opportunity of being heard. 

  1. Applicability of advance ruling.—(1) The advance ruling pronounced by the Authority or the  Appellate Authority under this Chapter shall be binding only— 

(a) on the applicant who had sought it in respect of any matter referred to in sub-section (2)  of section 97 for advance ruling; 

(b) on the concerned officer or the jurisdictional officer in respect of the applicant.  

(2) The advance ruling referred to in sub-section (1) shall be binding unless the law, facts or  circumstances supporting the original advance ruling have changed.

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  1. Advance ruling to be void in certain circumstances.—(1) Where the Authority or the Appellate  Authority finds that advance ruling pronounced by it under sub-section (4) of section 98 or under  sub-section (1) of section 101 has been obtained by the applicant or the appellant by fraud or suppression of  material facts or misrepresentation of facts, it may, by order, declare such ruling to be void ab-initio and  thereupon all the provisions of this Act or the rules made thereunder shall apply to the applicant or the  appellant as if such advance ruling had never been made: 

Provided that no order shall be passed under this sub-section unless an opportunity of being heard has  been given to the applicant or the appellant. 

Explanation.––The period beginning with the date of such advance ruling and ending with the date  of order under this sub-section shall be excluded while computing the period specified in sub-sections (2)  and (10) of section 73 or sub-sections (2) and (10) of section 74. 

(2) A copy of the order made under sub-section (1) shall be sent to the applicant, the concerned  officer and the jurisdictional officer. 

  1. Powers of Authority and Appellate Authority.—(1) The Authority or the Appellate Authority  shall, for the purpose of exercising its powers regarding— 

(a) discovery and inspection; 

(b) enforcing the attendance of any person and examining him on oath; 

(c) issuing commissions and compelling production of books of account and other records, have all the powers of a civil court under the Code of Civil Procedure, 1908 (5 of 1908). 

(2) The Authority or the Appellate Authority shall be deemed to be a civil court for the purposes of  section 195, but not for the purposes of Chapter XXVI of the Code of Criminal Procedure, 1973  (2 of 1974), and every proceeding before the Authority or the Appellate Authority shall be deemed to be a  judicial proceedings within the meaning of sections 193 and 228, and for the purpose of section 196 of the  Indian Penal Code (45 of 1860). 

  1. Procedure of Authority and Appellate Authority.—The Authority or the Appellate Authority  shall, subject to the provisions of this Chapter, have power to regulate its own procedure. 

CHAPTER XVIII 

APPEALS AND REVISION 

  1. Appeals to Appellate Authority.—(1) Any person aggrieved by any decision or order passed  under this Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax  Act by an adjudicating authority may appeal to such Appellate Authority as may be prescribed within  three months from the date on which the said decision or order is communicated to such person. 

(2) The Commissioner may, on his own motion, or upon request from the Commissioner of State tax or  the Commissioner of Union territory tax, call for and examine the record of any proceedings in which an  adjudicating authority has passed any decision or order under this Act or the State Goods and Services Tax Act  or the Union Territory Goods and Services Tax Act, for the purpose of satisfying himself as to the legality or  propriety of the said decision or order and may, by order, direct any officer subordinate to him to apply to the  Appellate Authority within six months from the date of communication of the said decision or order for the  determination of such points arising out of the said decision or order as may be specified by the Commissioner  in his order. 

(3) Where, in pursuance of an order under sub-section (2), the authorised officer makes an application  to the Appellate Authority, such application shall be dealt with by the Appellate Authority as if it were an  appeal made against the decision or order of the adjudicating authority and such authorised officer were  an appellant and the provisions of this Act relating to appeals shall apply to such application. 

(4) The Appellate Authority may, if he is satisfied that the appellant was prevented by sufficient cause  from presenting the appeal within the aforesaid period of three months or six months, as the case may be,  allow it to be presented within a further period of one month.

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(5) Every appeal under this section shall be in such form and shall be verified in such manner as may  be prescribed. 

(6) No appeal shall be filed under sub-section (1), unless the appellant has paid— 

(a) in full, such part of the amount of tax, interest, fine, fee and penalty arising from the  impugned order, 1[subject to a maximum of twenty-five crore rupees,] as is admitted by him; and 

(b) a sum equal to ten per cent. of the remaining amount of tax in dispute arising from the said  order, in relation to which the appeal has been filed. 

(7) Where the appellant has paid the amount under sub-section (6), the recovery proceedings for the  balance amount shall be deemed to be stayed. 

(8) The Appellate Authority shall give an opportunity to the appellant of being heard. 

(9) The Appellate Authority may, if sufficient cause is shown at any stage of hearing of an appeal,  grant time to the parties or any of them and adjourn the hearing of the appeal for reasons to be recorded in  writing: 

Provided that no such adjournment shall be granted more than three times to a party during hearing of  the appeal. 

(10) The Appellate Authority may, at the time of hearing of an appeal, allow an appellant to add any  ground of appeal not specified in the grounds of appeal, if it is satisfied that the omission of that ground from  the grounds of appeal was not wilful or unreasonable. 

(11) The Appellate Authority shall, after making such further inquiry as may be necessary, pass such  order, as it thinks just and proper, confirming, modifying or annulling the decision or order appealed  against but shall not refer the case back to the adjudicating authority that passed the said decision or  order: 

Provided that an order enhancing any fee or penalty or fine in lieu of confiscation or confiscating  goods of greater value or reducing the amount of refund or input tax credit shall not be passed unless the  appellant has been given a reasonable opportunity of showing cause against the proposed order: 

Provided further that where the Appellate Authority is of the opinion that any tax has not been paid or  short-paid or erroneously refunded, or where input tax credit has been wrongly availed or utilised, no  order requiring the appellant to pay such tax or input tax credit shall be passed unless the appellant is  given notice to show cause against the proposed order and the order is passed within the time limit  specified under section 73 or section 74. 

(12) The order of the Appellate Authority disposing of the appeal shall be in writing and shall state  the points for determination, the decision thereon and the reasons for such decision. 

(13) The Appellate Authority shall, where it is possible to do so, hear and decide every appeal within  a period of one year from the date on which it is filed: 

Provided that where the issuance of order is stayed by an order of a court or Tribunal, the period of  such stay shall be excluded in computing the period of one year. 

(14) On disposal of the appeal, the Appellate Authority shall communicate the order passed by it to  the appellant, respondent and to the adjudicating authority. 

(15) A copy of the order passed by the Appellate Authority shall also be sent to the jurisdictional  Commissioner or the authority designated by him in this behalf and the jurisdictional Commissioner of  State tax or Commissioner of Union Territory Tax or an authority designated by him in this behalf. 

(16) Every order passed under this section shall, subject to the provisions of section 108 or section 113  or section 117 or section 118 be final and binding on the parties. 

  

  1. Ins. by Act 31 of 2018, s. 25 (w.e.f. 1-2-2019).

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  1. Powers of Revisional Authority.—(1) Subject to the provisions of section 121 and any rules made  thereunder, the Revisional Authority may, on his own motion, or upon information received by him or on  request from the Commissioner of State tax, or the Commissioner of Union territory tax, call for and examine  the record of any proceedings, and if he considers that any decision or order passed under this Act or under the  State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act by any officer  subordinate to him is erroneous in so far as it is prejudicial to the interest of revenue and is illegal or improper  or has not taken into account certain material facts, whether available at the time of issuance of the said order  or not or in consequence of an observation by the Comptroller and Auditor-General of India, he may, if  necessary, stay the operation of such decision or order for such period as he deems fit and after giving the  person concerned an opportunity of being heard and after making such further inquiry as may be necessary,  pass such order, as he thinks just and proper, including enhancing or modifying or annulling the said decision  or order. 

(2) The Revisional Authority shall not exercise any power under sub-section (1), if— 

(a) the order has been subject to an appeal under section 107 or section 112 or section 117 or  section 118; or 

(b) the period specified under sub-section (2) of section 107 has not yet expired or more than  three years have expired after the passing of the decision or order sought to be revised; or 

(c) the order has already been taken for revision under this section at an earlier stage; or (d) the order has been passed in exercise of the powers under sub-section (1): 

Provided that the Revisional Authority may pass an order under sub-section (1) on any point which  has not been raised and decided in an appeal referred to in clause (a) of sub-section (2), before the expiry  of a period of one year from the date of the order in such appeal or before the expiry of a period of three  years referred to in clause (b) of that sub-section, whichever is later. 

(3) Every order passed in revision under sub-section (1) shall, subject to the provisions of section 113 or  section 117 or section 118, be final and binding on the parties. 

(4) If the said decision or order involves an issue on which the Appellate Tribunal or the High Court has  given its decision in some other proceedings and an appeal to the High Court or the Supreme Court against  such decision of the Appellate Tribunal or the High Court is pending, the period spent between the date of the  decision of the Appellate Tribunal and the date of the decision of the High Court or the date of the decision of  the High Court and the date of decision of the Supreme Court shall be excluded in computing the period of  limitation referred to in clause (b) of sub-section (2) where proceedings for revision have been initiated by way  of issue of a notice under this section. 

(5) Where the issuance of an order under sub-section (1) is stayed by the order of a court or Appellate  Tribunal, the period of such stay shall be excluded in computing the period of limitation referred to in  clause (b) of sub-section (2). 

(6) For the purposes of this section, the term,–– 

(i) ―record‖ shall include all records relating to any proceedings under this Act available at the  time of examination by the Revisional Authority; 

(ii) ―decision‖ shall include intimation given by any officer lower in rank than the Revisional  Authority. 

  1. Constitution of Appellate Tribunal and Benches thereof.—(1) The Government shall, on the  recommendations of the Council, by notification, constitute with effect from such date as may be specified  therein, an Appellate Tribunal known as the Goods and Services Tax Appellate Tribunal for hearing appeals  against the orders passed by the Appellate Authority or the Revisional Authority. 

(2) The powers of the Appellate Tribunal shall be exercisable by the National Bench and Benches  thereof (hereinafter in this Chapter referred to as ―Regional Benches‖), State Bench and Benches thereof  (hereafter in this Chapter referred to as ―Area Benches‖).

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(3) The National Bench of the Appellate Tribunal shall be situated at New Delhi which shall be  presided over by the President and shall consist of one Technical Member (Centre) and one Technical  Member (State). 

(4) The Government shall, on the recommendations of the Council, by notification, constitute such number  of Regional Benches as may be required and such Regional Benches shall consist of a Judicial Member, one  Technical Member (Centre) and one Technical Member (State). 

(5) The National Bench or Regional Benches of the Appellate Tribunal shall have jurisdiction to hear  appeals against the orders passed by the Appellate Authority or the Revisional Authority in the cases  where one of the issues involved relates to the place of supply. 

(6) The Government shall, by notification, specify for each State or Union territory, 1[except for the State of  Jammu and Kashmir] a Bench of the Appellate Tribunal (hereafter in this Chapter, referred to as ―State Bench‖)  for exercising the powers of the Appellate Tribunal within the concerned State or Union territory: 

2[Provided that for the State of Jammu and Kashmir, the State Bench of the Goods and Services Tax  Appellate Tribunal constituted under this Act shall be the State Appellate Tribunal constituted under the  Jammu and Kashmir Goods and Services Tax Act, 2017:  

Provided further that] the Government shall, on receipt of a request from any State Government,  constitute such number of Area Benches in that State, as may be recommended by the Council: 

3[Provided also that] the Government may, on receipt of a request from any State, or on its own  motion for a Union territory, notify the Appellate Tribunal in a State to act as the Appellate Tribunal for  any other State or Union territory, as may be recommended by the Council, subject to such terms and  conditions as may be prescribed. 

(7) The State Bench or Area Benches shall have jurisdiction to hear appeals against the orders passed  by the Appellate Authority or the Revisional Authority in the cases involving matters other than those  referred to in sub-section (5). 

(8) The President and the State President shall, by general or special order, distribute the business or  transfer cases among Regional Benches or, as the case may be, Area Benches in a State. 

(9) Each State Bench and Area Benches of the Appellate Tribunal shall consist of a Judicial Member,  one Technical Member (Centre) and one Technical Member (State) and the State Government may  designate the senior most Judicial Member in a State as the State President. 

(10) In the absence of a Member in any Bench due to vacancy or otherwise, any appeal may, with the  approval of the President or, as the case may be, the State President, be heard by a Bench of two  Members: 

Provided that any appeal where the tax or input tax credit involved or the difference in tax or input tax  credit involved or the amount of fine, fee or penalty determined in any order appealed against, does not  exceed five lakh rupees and which does not involve any question of law may, with the approval of the  President and subject to such conditions as may be prescribed on the recommendations of the Council, be  heard by a bench consisting of a single member. 

(11) If the Members of the National Bench, Regional Benches, State Bench or Area Benches differ in  opinion on any point or points, it shall be decided according to the opinion of the majority, if there is a  majority, but if the Members are equally divided, they shall state the point or points on which they differ, and  the case shall be referred by the President or as the case may be, State President for hearing on such point or  points to one or more of the other Members of the National Bench, Regional Benches, State Bench or Area  

  

  1. Ins. by Act 26 of 2017, s. 2, (w.e.f. 8-7-2017). 
  2. Subs. by s. 2, ibid., for ―Provided that‖ (w.e.f. 8-7-2017). 
  3. Subs. by s. 2, ibid., for ―Provided further that‖ (w.e.f. 8-7-2017).

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Benches and such point or points shall be decided according to the opinion of the majority of Members who  have heard the case, including those who first heard it. 

(12) The Government, in consultation with the President may, for the administrative convenience,  transfer— 

(a) any Judicial Member or a Member Technical (State) from one Bench to another Bench,  whether National or Regional; or 

(b) any Member Technical (Centre) from one Bench to another Bench, whether National, Regional,  State or Area. 

(13) The State Government, in consultation with the State President may, for the administrative  convenience, transfer a Judicial Member or a Member Technical (State) from one Bench to another Bench  within the State. 

(14) No act or proceedings of the Appellate Tribunal shall be questioned or shall be invalid merely on  the ground of the existence of any vacancy or defect in the constitution of the Appellate Tribunal. 

  1. President and Members of Appellate Tribunal, their qualification, appointment, conditions  of service, etc.—(1) A person shall not be qualified for appointment as— 

(a) the President, unless he has been a Judge of the Supreme Court or is or has been the Chief  Justice of a High Court, or is or has been a Judge of a High Court for a period not less than five years; 

(b) a Judicial Member, unless he— 

(i) has been a Judge of the High Court; or 

(ii) is or has been a District Judge qualified to be appointed as a Judge of a High Court; or 

(iii) is or has been a Member of Indian Legal Service and has held a post not less than  Additional Secretary for three years; 

(c) a Technical Member (Centre) unless he is or has been a member of Indian Revenue (Customs  and Central Excise) Service, Group A, and has completed at least fifteen years of service in Group A; 

(d) a Technical Member (State) unless he is or has been an officer of the State Government not below  the rank of Additional Commissioner of Value Added Tax or the State goods and services tax or such rank  as may be notified by the concerned State Government on the recommendations of the Council with at  least three years of experience in the administration of an existing law or the State Goods and Services Tax  Act or in the field of finance and taxation. 

(2) The President and the Judicial Members of the National Bench and the Regional Benches shall be  appointed by the Government after consultation with the Chief Justice of India or his nominee: 

Provided that in the event of the occurrence of any vacancy in the office of the President by reason of his  death, resignation or otherwise, the senior most Member of the National Bench shall act as the President until  the date on which a new President, appointed in accordance with the provisions of this Act to fill such  vacancy, enters upon his office: 

Provided further that where the President is unable to discharge his functions owing to absence, illness  or any other cause, the senior most Member of the National Bench shall discharge the functions of the  President until the date on which the President resumes his duties. 

(3) The Technical Member (Centre) and Technical Member (State) of the National Bench and Regional  Benches shall be appointed by the Government on the recommendations of a Selection Committee consisting of  such persons and in such manner as may be prescribed.

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(4) The Judicial Member of the State Bench or Area Benches shall be appointed by the State  Government after consultation with the Chief Justice of the High Court of the State or his nominee. 

(5) The Technical Member (Centre) of the State Bench or Area Benches shall be appointed by the  Central Government and Technical Member (State) of the State Bench or Area Benches shall be  appointed by the State Government in such manner as may be prescribed. 

(6) No appointment of the Members of the Appellate Tribunal shall be invalid merely by the reason of any  vacancy or defect in the constitution of the Selection Committee. 

(7) Before appointing any person as the President or Members of the Appellate Tribunal, the Central  Government or, as the case may be, the State Government, shall satisfy itself that such person does not have any  financial or other interests which are likely to prejudicially affect his functions as such President or Member. 

(8) The salary, allowances and other terms and conditions of service of the President, State President and the  Members of the Appellate Tribunal shall be such as may be prescribed: 

Provided that neither salary and allowances nor other terms and conditions of service of the President,  State President or Members of the Appellate Tribunal shall be varied to their disadvantage after their  appointment. 

(9) The President of the Appellate Tribunal shall hold office for a term of three years from the date on  which he enters upon his office, or until he attains the age of seventy years, whichever is earlier and shall  be eligible for reappointment. 

(10) The Judicial Member of the Appellate Tribunal and the State President shall hold office for a term  of three years from the date on which he enters upon his office, or until he attains the age of sixty-five  years, whichever is earlier and shall be eligible for reappointment. 

(11) The Technical Member (Centre) or Technical Member (State) of the Appellate Tribunal shall  hold office for a term of five years from the date on which he enters upon his office, or until he attains the  age of sixty-five years, whichever is earlier and shall be eligible for reappointment. 

(12) The President, State President or any Member may, by notice in writing under his hand addressed  to the Central Government or, as the case may be, the State Government resign from his office: 

Provided that the President, State President or Member shall continue to hold office until the expiry of  three months from the date of receipt of such notice by the Central Government, or, as the case may be,  the State Government or until a person duly appointed as his successor enters upon his office or until the  expiry of his term of office, whichever is the earliest. 

(13) The Central Government may, after consultation with the Chief Justice of India, in case of the  President, Judicial Members and Technical Members of the National Bench, Regional Benches or Technical  Members (Centre) of the State Bench or Area Benches, and the State Government may, after consultation with  the Chief Justice of High Court, in case of the State President, Judicial Members, Technical Members (State)  of the State Bench or Area Benches, may remove from the office such President or Member, who— 

(a) has been adjudged an insolvent; or 

(b) has been convicted of an offence which, in the opinion of such Government involves moral  turpitude; or 

(c) has become physically or mentally incapable of acting as such President, State President or  Member; or 

(d) has acquired such financial or other interest as is likely to affect prejudicially his functions as  such President, State President or Member; or 

(e) has so abused his position as to render his continuance in office prejudicial to the public  interest: 

Provided that the President, State President or the Member shall not be removed on any of the grounds  specified in clauses (d) and (e), unless he has been informed of the charges against him and has been given an  opportunity of being heard.

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(14) Without prejudice to the provisions of sub-section (13),–– 

(a) the President or a Judicial and Technical Member of the National Bench or Regional Benches,  Technical Member (Centre) of the State Bench or Area Benches shall not be removed from their office  except by an order made by the Central Government on the ground of proved misbehaviour or incapacity  after an inquiry made by a Judge of the Supreme Court nominated by the Chief Justice of India on a  reference made to him by the Central Government and of which the President or the said Member had  been given an opportunity of being heard; 

(b) the Judicial Member or Technical Member (State) of the State Bench or Area Benches shall not  be removed from their office except by an order made by the State Government on the ground of proved  misbehaviour or incapacity after an inquiry made by a Judge of the concerned High Court nominated by  the Chief Justice of the concerned High Court on a reference made to him by the State Government and  of which the said Member had been given an opportunity of being heard. 

(15) The Central Government, with the concurrence of the Chief Justice of India, may suspend from  office, the President or a Judicial or Technical Members of the National Bench or the Regional Benches or  the Technical Member (Centre) of the State Bench or Area Benches in respect of whom a reference has  been made to the Judge of the Supreme Court under sub-section (14). 

(16) The State Government, with the concurrence of the Chief Justice of the High Court, may suspend  from office, a Judicial Member or Technical Member (State) of the State Bench or Area Benches in  respect of whom a reference has been made to the Judge of the High Court under sub-section (14). 

(17) Subject to the provisions of article 220 of the Constitution, the President, State President or other  Members, on ceasing to hold their office, shall not be eligible to appear, act or plead before the National  Bench and the Regional Benches or the State Bench and the Area Benches thereof where he was the  President or, as the case may be, a Member. 

  1. Procedure before Appellate Tribunal.—(1) The Appellate Tribunal shall not, while disposing  of any proceedings before it or an appeal before it, be bound by the procedure laid down in the Code of Civil  Procedure, 1908 (5 of 1908), but shall be guided by the principles of natural justice and subject to the other  provisions of this Act and the rules made thereunder, the Appellate Tribunal shall have power to regulate its  own procedure. 

(2) The Appellate Tribunal shall, for the purposes of discharging its functions under this Act, have  the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908) while  trying a suit in respect of the following matters, namely:— 

(a) summoning and enforcing the attendance of any person and examining him on oath; (b) requiring the discovery and production of documents; 

(c) receiving evidence on affidavits; 

(d) subject to the provisions of sections 123 and 124 of the Indian Evidence Act, 1872  (1 of 1872), requisitioning any public record or document or a copy of such record or document from  any office; 

(e) issuing commissions for the examination of witnesses or documents; 

(f) dismissing a representation for default or deciding it ex parte

(g) setting aside any order of dismissal of any representation for default or any order passed by it  ex parte; and 

(h) any other matter which may be prescribed. 

(3) Any order made by the Appellate Tribunal may be enforced by it in the same manner as if it were  a decree made by a court in a suit pending therein, and it shall be lawful for the Appellate Tribunal to  send for execution of its orders to the court within the local limits of whose jurisdiction,— 

(a) in the case of an order against a company, the registered office of the company is situated; or

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(b) in the case of an order against any other person, the person concerned voluntarily resides or  carries on business or personally works for gain. 

(4) All proceedings before the Appellate Tribunal shall be deemed to be judicial proceedings within the  meaning of sections 193 and 228, and for the purposes of section 196 of the Indian Penal Code (45 of 1860),  and the Appellate Tribunal shall be deemed to be civil court for the purposes of section 195 and Chapter XXVI  of the Code of Criminal Procedure, 1973 (2 of 1974). 

  1. Appeals to Appellate Tribunal.—(1) Any person aggrieved by an order passed against him  under section 107 or section 108 of this Act or the State Goods and Services Tax Act or the Union  Territory Goods and Services Tax Act may appeal to the Appellate Tribunal against such order within  three months from the date on which the order sought to be appealed against is communicated to the  person preferring the appeal. 

(2) The Appellate Tribunal may, in its discretion, refuse to admit any such appeal where the tax or  input tax credit involved or the difference in tax or input tax credit involved or the amount of fine, fee or  penalty determined by such order, does not exceed fifty thousand rupees. 

(3) The Commissioner may, on his own motion, or upon request from the Commissioner of State tax or  Commissioner of Union territory tax, call for and examine the record of any order passed by the Appellate  Authority or the Revisional Authority under this Act or the State Goods and Services Tax Act or the Union  Territory Goods and Services Tax Act for the purpose of satisfying himself as to the legality or propriety of the  said order and may, by order, direct any officer subordinate to him to apply to the Appellate Tribunal within  six months from the date on which the said order has been passed for determination of such points arising out  of the said order as may be specified by the Commissioner in his order. 

(4) Where in pursuance of an order under sub-section (3) the authorised officer makes an application to  the Appellate Tribunal, such application shall be dealt with by the Appellate Tribunal as if it were an appeal  made against the order under sub-section (11) of section 107 or under sub-section (1) of section 108 and the  provisions of this Act shall apply to such application, as they apply in relation to appeals filed under  sub-section (1). 

(5) On receipt of notice that an appeal has been preferred under this section, the party against whom  the appeal has been preferred may, notwithstanding that he may not have appealed against such order or  any part thereof, file, within forty-five days of the receipt of notice, a memorandum of cross-objections,  verified in the prescribed manner, against any part of the order appealed against and such memorandum  shall be disposed of by the Appellate Tribunal, as if it were an appeal presented within the time specified  in sub-section (1). 

(6) The Appellate Tribunal may admit an appeal within three months after the expiry of the period  referred to in sub-section (1), or permit the filing of a memorandum of cross-objections within forty-five  days after the expiry of the period referred to in sub-section (5) if it is satisfied that there was sufficient  cause for not presenting it within that period. 

(7) An appeal to the Appellate Tribunal shall be in such form, verified in such manner and shall be  accompanied by such fee, as may be prescribed. 

(8) No appeal shall be filed under sub-section (1), unless the appellant has paid–– 

(a) in full, such part of the amount of tax, interest, fine, fee and penalty arising from the  impugned order, as is admitted by him; and 

(b) a sum equal to twenty per cent. of the remaining amount of tax in dispute, in addition to the  amount paid under sub-section (6) of section 107, arising from the said order, 1[subject to a maximum  of fifty crore rupees,] in relation to which the appeal has been filed. 

  

  1. Ins. by Act 31 of 2018, s. 26 (w.e.f. 1-2-2019).

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(9) Where the appellant has paid the amount as per sub-section (8), the recovery proceedings for the  balance amount shall be deemed to be stayed till the disposal of the appeal. 

(10) Every application made before the Appellate Tribunal,— 

(a) in an appeal for rectification of error or for any other purpose; or 

(b) for restoration of an appeal or an application,  

shall be accompanied by such fees as may be prescribed. 

  1. Orders of Appellate Tribunal.—(1) The Appellate Tribunal may, after giving the parties to the  appeal an opportunity of being heard, pass such orders thereon as it thinks fit, confirming, modifying or  annulling the decision or order appealed against or may refer the case back to the Appellate Authority, or  the Revisional Authority or to the original adjudicating authority, with such directions as it may think fit,  for a fresh adjudication or decision after taking additional evidence, if necessary. 

(2) The Appellate Tribunal may, if sufficient cause is shown, at any stage of hearing of an appeal,  grant time to the parties or any of them and adjourn the hearing of the appeal for reasons to be recorded in  writing: 

Provided that no such adjournment shall be granted more than three times to a party during hearing  of the appeal. 

(3) The Appellate Tribunal may amend any order passed by it under sub-section (1) so as to rectify  any error apparent on the face of the record, if such error is noticed by it on its own accord, or is brought  to its notice by the Commissioner or the Commissioner of State tax or the Commissioner of the Union  territory tax or the other party to the appeal within a period of three months from the date of the order: 

Provided that no amendment which has the effect of enhancing an assessment or reducing a refund or  input tax credit or otherwise increasing the liability of the other party, shall be made under this  sub-section, unless the party has been given an opportunity of being heard. 

(4) The Appellate Tribunal shall, as far as possible, hear and decide every appeal within a period of  one year from the date on which it is filed. 

(5) The Appellate Tribunal shall send a copy of every order passed under this section to the Appellate  Authority or the Revisional Authority, or the original adjudicating authority, as the case may be, the appellant  and the jurisdictional Commissioner or the Commissioner of State tax or the Union territory tax. 

(6) Save as provided in section 117 or section 118, orders passed by the Appellate Tribunal on an  appeal shall be final and binding on the parties. 

  1. Financial and administrative powers of President.—The President shall exercise such  financial and administrative powers over the National Bench and Regional Benches of the Appellate  Tribunal as may be prescribed: 

Provided that the President shall have the authority to delegate such of his financial and  administrative powers as he may think fit to any other Member or any officer of the National Bench and  Regional Benches, subject to the condition that such Member or officer shall, while exercising such  delegated powers, continue to act under the direction, control and supervision of the President. 

  1. Interest on refund of amount paid for admission of appeal.—Where an amount paid by the  appellant under sub-section (6) of section 107 or sub-section (8) of section 112 is required to be refunded  consequent to any order of the Appellate Authority or of the Appellate Tribunal, interest at the rate  specified under section 56 shall be payable in respect of such refund from the date of payment of the  amount till the date of refund of such amount. 
  2. Appearance by authorised representative.—(1) Any person who is entitled or required to  appear before an officer appointed under this Act, or the Appellate Authority or the Appellate Tribunal in  connection with any proceedings under this Act, may, otherwise than when required under this Act to 

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appear personally for examination on oath or affirmation, subject to the other provisions of this section,  appear by an authorised representative. 

(2) For the purposes of this Act, the expression ―authorised representative‖ shall mean a person  authorised by the person referred to in sub-section (1) to appear on his behalf, being— 

(a) his relative or regular employee; or 

(b) an advocate who is entitled to practice in any court in India, and who has not been debarred  from practicing before any court in India; or 

(c) any chartered accountant, a cost accountant or a company secretary, who holds a certificate of  practice and who has not been debarred from practice; or 

(d) a retired officer of the Commercial Tax Department of any State Government or Union territory or  of the Board who, during his service under the Government, had worked in a post not below the rank than  that of a Group-B Gazetted officer for a period of not less than two years: 

Provided that such officer shall not be entitled to appear before any proceedings under this Act for a  period of one year from the date of his retirement or resignation; or 

(e) any person who has been authorised to act as a goods and services tax practitioner on behalf of  the concerned registered person. 

(3) No person,— 

(a) who has been dismissed or removed from Government service; or 

(b) who is convicted of an offence connected with any proceedings under this Act, the State  Goods and Services Tax Act, the Integrated Goods and Services Tax Act or the Union Territory  Goods and Services Tax Act, or under the existing law or under any of the Acts passed by a State  Legislature dealing with the imposition of taxes on sale of goods or supply of goods or services or  both; or 

(c) who is found guilty of misconduct by the prescribed authority; or 

(d) who has been adjudged as an insolvent, 

shall be qualified to represent any person under sub-section (1)— 

(i) for all times in case of persons referred to in clauses (a), (b) and (c); and 

(ii) for the period during which the insolvency continues in the case of a person referred to in  clause (d). 

(4) Any person who has been disqualified under the provisions of the State Goods and Services Tax  Act or the Union Territory Goods and Services Tax Act shall be deemed to be disqualified under this Act. 

  1. Appeal to High Court.—(1) Any person aggrieved by any order passed by the State Bench or  Area Benches of the Appellate Tribunal may file an appeal to the High Court and the High Court may admit  such appeal, if it is satisfied that the case involves a substantial question of law. 

(2) An appeal under sub-section (1) shall be filed within a period of one hundred and eighty days from  the date on which the order appealed against is received by the aggrieved person and it shall be in such  form, verified in such manner as may be prescribed: 

Provided that the High Court may entertain an appeal after the expiry of the said period if it is  satisfied that there was sufficient cause for not filing it within such period. 

(3) Where the High Court is satisfied that a substantial question of law is involved in any case, it shall  formulate that question and the appeal shall be heard only on the question so formulated, and the  respondents shall, at the hearing of the appeal, be allowed to argue that the case does not involve such  question:

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Provided that nothing in this sub-section shall be deemed to take away or abridge the power of the court  to hear, for reasons to be recorded, the appeal on any other substantial question of law not formulated by it,  if it is satisfied that the case involves such question. 

(4) The High Court shall decide the question of law so formulated and deliver such judgment thereon  containing the grounds on which such decision is founded and may award such cost as it deems fit. 

(5) The High Court may determine any issue which–– 

(a) has not been determined by the State Bench or Area Benches; or 

(b) has been wrongly determined by the State Bench or Area Benches, by reason of a decision on  such question of law as herein referred to in sub-section (3). 

(6) Where an appeal has been filed before the High Court, it shall be heard by a Bench of not less  than two Judges of the High Court, and shall be decided in accordance with the opinion of such Judges or  of the majority, if any, of such Judges. 

(7) Where there is no such majority, the Judges shall state the point of law upon which they differ and the  case shall, then, be heard upon that point only, by one or more of the other Judges of the High Court and such  point shall be decided according to the opinion of the majority of the Judges who have heard the case  including those who first heard it. 

(8) Where the High Court delivers a judgment in an appeal filed before it under this section, effect  shall be given to such judgment by either side on the basis of a certified copy of the judgment. 

(9) Save as otherwise provided in this Act, the provisions of the Code of Civil Procedure, 1908  (5 of 1908), relating to appeals to the High Court shall, as far as may be, apply in the case of appeals  under this section. 

  1. Appeal to Supreme Court.––(1) An appeal shall lie to the Supreme Court— 

(a) from any order passed by the National Bench or Regional Benches of the Appellate  Tribunal; or 

(b) from any judgment or order passed by the High Court in an appeal made under section 117  in any case which, on its own motion or on an application made by or on behalf of the party  aggrieved, immediately after passing of the judgment or order, the High Court certifies to be a fit  one for appeal to the Supreme Court. 

(2) The provisions of the Code of Civil Procedure, 1908 (5 of 1908), relating to appeals to the  Supreme Court shall, so far as may be, apply in the case of appeals under this section as they apply in the  case of appeals from decrees of a High Court. 

(3) Where the judgment of the High Court is varied or reversed in the appeal, effect shall be given to  the order of the Supreme Court in the manner provided in section 117 in the case of a judgment of the  High Court. 

  1. Sums due to be paid notwithstanding appeal, etc.––Notwithstanding that an appeal has been  preferred to the High Court or the Supreme Court, sums due to the Government as a result of an order  passed by the National or Regional Benches of the Appellate Tribunal under sub-section (1) of  section 113 or an order passed by the State Bench or Area Benches of the Appellate Tribunal under  sub-section (1) of section 113 or an order passed by the High Court under section 117, as the case may be,  shall be payable in accordance with the order so passed. 
  2. Appeal not to be filed in certain cases.––(1) The Board may, on the recommendations of the  Council, from time to time, issue orders or instructions or directions fixing such monetary limits, as it  may deem fit, for the purposes of regulating the filing of appeal or application by the officer of the central  tax under the provisions of this Chapter.

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(2) Where, in pursuance of the orders or instructions or directions issued under sub-section (1), the  officer of the central tax has not filed an appeal or application against any decision or order passed under  the provisions of this Act, it shall not preclude such officer of the central tax from filing appeal or  application in any other case involving the same or similar issues or questions of law. 

(3) Notwithstanding the fact that no appeal or application has been filed by the officer of the central  tax pursuant to the orders or instructions or directions issued under sub-section (1), no person, being a  party in appeal or application shall contend that the officer of the central tax has acquiesced in the  decision on the disputed issue by not filing an appeal or application. 

(4) The Appellate Tribunal or court hearing such appeal or application shall have regard to the  circumstances under which appeal or application was not filed by the officer of the central tax in  pursuance of the orders or instructions or directions issued under sub-section (1). 

  1. Non-appealable decisions and orders.––Notwithstanding anything to the contrary in any  provisions of this Act, no appeal shall lie against any decision taken or order passed by an officer of central tax  if such decision taken or order passed relates to any one or more of the following matters, namely:— 

(a) an order of the Commissioner or other authority empowered to direct transfer of proceedings  from one officer to another officer; or 

(b) an order pertaining to the seizure or retention of books of account, register and other  documents; or 

(c) an order sanctioning prosecution under this Act; or 

(d) an order passed under section 80. 

CHAPTER XIX 

OFFENCES AND PENALTIES 

  1. Penalty for certain offences.––(1) Where a taxable person who–– 

(i) supplies any goods or services or both without issue of any invoice or issues an incorrect or  false invoice with regard to any such supply; 

(ii) issues any invoice or bill without supply of goods or services or both in violation of the  provisions of this Act or the rules made thereunder; 

(iii) collects any amount as tax but fails to pay the same to the Government beyond a period of three  months from the date on which such payment becomes due; 

(iv) collects any tax in contravention of the provisions of this Act but fails to pay the same to the  Government beyond a period of three months from the date on which such payment becomes due; 

(v) fails to deduct the tax in accordance with the provisions of sub-section (1) of section 51, or  deducts an amount which is less than the amount required to be deducted under the said sub-section,  or where he fails to pay to the Government under sub-section (2) thereof, the amount deducted as tax; 

(vi) fails to collect tax in accordance with the provisions of sub-section (1) of section 52, or  collects an amount which is less than the amount required to be collected under the said sub-section  or where he fails to pay to the Government the amount collected as tax under sub-section (3) of  section 52; 

(vii) takes or utilises input tax credit without actual receipt of goods or services or both either  fully or partially, in contravention of the provisions of this Act or the rules made thereunder; 

(viii) fraudulently obtains refund of tax under this Act; 

(ix) takes or distributes input tax credit in contravention of section 20, or the rules made  thereunder; 

(x) falsifies or substitutes financial records or produces fake accounts or documents or furnishes  any false information or return with an intention to evade payment of tax due under this Act;

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(xi) is liable to be registered under this Act but fails to obtain registration; 

(xii) furnishes any false information with regard to registration particulars, either at the time of  applying for registration, or subsequently; 

(xiii) obstructs or prevents any officer in discharge of his duties under this Act; 

(xiv) transports any taxable goods without the cover of documents as may be specified in this  behalf; 

(xv) suppresses his turnover leading to evasion of tax under this Act; 

(xvi) fails to keep, maintain or retain books of account and other documents in accordance with  the provisions of this Act or the rules made thereunder; 

(xvii) fails to furnish information or documents called for by an officer in accordance with the  provisions of this Act or the rules made thereunder or furnishes false information or documents  during any proceedings under this Act; 

(xviii) supplies, transports or stores any goods which he has reasons to believe are liable to  confiscation under this Act; 

(xix) issues any invoice or document by using the registration number of another registered  person; 

(xx) tampers with, or destroys any material evidence or document; 

(xxi) disposes of or tampers with any goods that have been detained, seized, or attached under this  Act, 

shall be liable to pay a penalty of ten thousand rupees or an amount equivalent to the tax evaded or the tax not  deducted under section 51 or short deducted or deducted but not paid to the Government or tax not collected  under section 52 or short collected or collected but not paid to the Government or input tax credit availed of or  passed on or distributed irregularly, or the refund claimed fraudulently, whichever is higher. 

(2) Any registered person who supplies any goods or services or both on which any tax has not been  paid or short-paid or erroneously refunded, or where the input tax credit has been wrongly availed or  utilised,— 

(a) for any reason, other than the reason of fraud or any wilful misstatement or suppression of  facts to evade tax, shall be liable to a penalty of ten thousand rupees or ten per cent. of the tax due  from such person, whichever is higher; 

(b) for reason of fraud or any wilful misstatement or suppression of facts to evade tax, shall be  liable to a penalty equal to ten thousand rupees or the tax due from such person, whichever is higher. 

(3) Any person who–– 

(a) aids or abets any of the offences specified in clauses (i) to (xxi) of sub-section (1); 

(b) acquires possession of, or in any way concerns himself in transporting, removing, depositing,  keeping, concealing, supplying, or purchasing or in any other manner deals with any goods which he  knows or has reasons to believe are liable to confiscation under this Act or the rules made thereunder; 

(c) receives or is in any way concerned with the supply of, or in any other manner deals with any  supply of services which he knows or has reasons to believe are in contravention of any provisions of  this Act or the rules made thereunder; 

(d) fails to appear before the officer of central tax, when issued with a summons for appearance to  give evidence or produce a document in an inquiry; 

(e) fails to issue invoice in accordance with the provisions of this Act or the rules made  thereunder or fails to account for an invoice in his books of account,

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